Cadilac XTS 2012

With the XTS, GM’s luxury-car division has made the difficult decision to replace the front-drive DTS and rear/all-wheel-drive STS sedans with a single car that it hopes doesn’t drive away current buyers of  both. Last year, U.S. buyers (many of them probably bearing coupons) scooped up about 23,000 of these models, or nearly 40 percent of Cadillac’s car sales.

The DTS, especially, looks out of whack with Cadillac’s rumored future product plan, which is performance oriented. One of Cadillac’s goals is to move the CTS up in size and prestige to become a true rival to the BMW 5-series and the Mercedes E-class. Also, the company is to bring in a smaller car, the ATS, which will line up against the C-class and the 3-series. But Cadillac has a lot of loyal DTS buyers, people who gladly pay almost $50,000 for an old-fashioned American luxury cruiser. As one insider tells us, “Why walk away from such a profitable niche in the marketplace?

”The XTS, then, is not a rear-drive sporty sedan aimed at the Germans but, instead, will be a comfortable and luxurious barge that fits the needs of a particular group of American and Chinese buyers.

The XTS Platinum concept shown in January at the Detroit auto show hints at what the vehicle will look like. It is based on GM’s Epsilon architecture that underpins cars as diverse as the Chevy Malibu and the Buick LaCrosse, although it is stretched and will be offered only  with all-wheel drive. The car likely will be powered by a couple of versions of GM’s direct-injection 3.6-liter V-6: We suspect the base model will have a naturally aspirated unit making about 300 horsepower. The more upscale model will have a V-6 mated to a plug-in hybrid system, for a combined output of 350 horses. To ensure a suitably cushy ride with good body control, the car will use electronically controlled magnetorheological shock absorbers.

The actual XTS is apparently slightly narrower than the concept car pictured here and has an even longer rear overhang. Still, it’s bound to be a dramatic-looking machine. The concept car’s interior is knockout gorgeous, but we’re told that the production version won’t be quite as stellar. It will, however, feature infotainment and connectivity features by the boatload, accessible to both front and rear-seat passengers.

The XTS isn’t a flagship for Cadillac. Instead, insiders describe it as a vehicle for an aging boomer population that has a different set of requirements than the Audi/BMW/Mercedes crowd. Cadillac would like to do a range-topping car to take on the Mercedes S-class, but the company doesn’t have the money to do it yet.