Canadian Manufacturing

GM replaces 3 Cadillac sedans with 2, invests in Michigan $175M in plant

Automakers are starting to dump sedan models in the U.S. as buyers continue to flock to SUVs and trucks. The new Cadillac vehicles will debut by the end of 2021, and further details will be released later

June 18, 2018  by The Associated Press

DETROIT—General Motors is getting rid of three Cadillac sedans and replacing them with two new ones over the next 3 1/2 years.

The company says it’s sinking US$175 million into a Lansing, Michigan, factory to make replacements for the ATS compact, CTS midsize and XTS full-size cars.

Automakers are starting to dump sedan models in the U.S. as buyers continue to flock to SUVs and trucks. Fiat Chrysler cut U.S.-made compact and midsize cars in 2016, while Ford announced earlier this year that it would stop selling all cars but the Mustang over the next several years.


Related: Ford will stop making cars for North America, eyes US$25B in savings by 2022

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This year trucks and SUVs accounted for more than two thirds of U.S. auto sales, with cars at about one third. Just five years ago it was about half for each.

The ATS won’t be replaced but Cadillac hopes to cover its market with the new vehicles.

The ATS was designed to compete with the BMW 3 Series but never really caught on. The XTS was based on a Chevrolet Impala but also never sold well. It also overlapped with Cadillac’s CT6 flagship large sedan.

Last year ATS sales fell 39 per cent, while CTS sales dropped 35 per cent and XTS sales were off 27 per cent. The ATS recovered a bit this year but is still far behind competitors.

Spokesman Donny Nordlicht would say only that the new cars will debut by the end of 2021, and that further details would be released later. The changes will not change the Lansing Grand River factory’s workforce of about 2,000 people.

The Cadillac brand is emphasizing SUVs to match market demand, according to GM. Cadillac has promised to put out seven new vehicles by the end of 2021, with only two of them being sedans.


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