Caddy to Shrink Sedan Lineup, Add SUVs

General Motors Co.'s Cadillac luxury unit plans to discontinue its ATS (pictured), CTS and XTS sedans in 2019 and replace them with a single model—the upcoming CT5 sedan—by the end of the decade as consumer demand continues to shift toward crossover/SUVs.

The strategy will “rebalance” Cadillac’s sedan portfolio, brand chief Johan de Nysschen tells Reuters. He says the CT5 will cover the $35,000-to-$45,000 market, while updated versions of the just-launched CT6 flagship sedan will target higher-end sales.

A small sedan also is in the works to compete with the Audi A3 and other compact luxury cars, de Nysschen says. Cadillac will build the small car alongside the CT5 at GM’s plant near Lansing, Mich.

Meanwhile, Cadillac plans to add more crossovers and SUVs, starting next year with the compact XT4. This will be followed in 2019 by a larger three-row model that will compete against the Volvo XC90.

Cadillac also plans to launch several electrified vehicles in the second half of next decade, de Nysschen says.

The carmaker’s global sales soared 27% through the first half of the year. But Reuters notes the brand’s U.S. sales are off nearly 2% in the first half of this year, when combined sales of its four sedans plunged 16%.