Cruze-Based Caddy in the Works?

General Motors Co.’s premium Cadillac marque is developing a new entry-level model that will share GM’s front-wheel-drive “Delta” D2XX platform with the all-new Chevrolet Cruze small car and Volt hybrid, according to GMInsideNews.com.

The independent GM-centric web site, which doesn’t cite its sources, points to a new GM development program codenamed D2JL. Using GM’s traditional naming convention, the D would stand for Delta, while the J and L signify hatchback and Cadillac, respectively. The 2 represents the platform generation.

The hatchback designation could be for a five-door model similar to the Cruze Hatchback or a Volt-style notchback. A production version of such a vehicle likely would be powered by a choice of 1.5- and 2.0-liter turbocharged 4-cylinder engines—rather than a hybrid system to replace the now-defunct Cadillac ELR—mated with an 8-speed automatic transmission, GMIN opines.

No timeframe was given for the program, which is characterized as being in the early development stage. But some media reports speculate a new small Caddy could hit the streets as early as 2018.

Cadillac President Johan de Nysschen previously indicated the brand was evaluating the potential for an entry-level, rear-drive sedan positioned below the ATS. An fwd Caddy small car would compete against the Audi A3 and Mercedes-Benz CLA.

Cadillac’s previous attempt to share a fwd platform with its sister divisions failed spectacularly with the ill-conceived 1980s-era Cimarron. But, GMIN notes, the Delta architecture is much more refined than the Cimarron’s J-car chassis that also carried the Buick Skyhawk, Chevy Cavalier and Oldsmobile Firenza.

Another reason for Caddy to try the strategy again: Analysts say the brand could net as much as a $9,000 profit on each fwd small car.