GM's premium division desperately needs the two new models, the first due to its entry-level placement and sport-oriented, image-boosting role, and the second because of high profitability and luxury-oriented, yet still image-boosting role. The first is a true BMW 3-Series fighter dubbed ATS, smaller than the CTS that already targets 3-Series, Audi A4 and Mercedes-Benz C-Class buyers, to name a few. While the CTS will likely grow in size to more directly go after the 5-Series, A6 and E-Class customers, the new model will allow Cadillac to expand into global markets that buy smaller cars more effectively.
Currently that market is being serviced by Cadillac's Euro-only BLS sedan, a front-drive derivative of Saab's 9-3. It's not a true Cadillac, but it serves a purpose for the time being. The new ATS will be rear- and all-wheel drive, however, so it appears that Cadillac has its priorities right. It will likely be based on the next-generation CTS architecture, which is already under development according to Cadillac general manager Brian Nesbitt. Power will certainly include an updated version of GM's 3.6L V6, while its new fuel-efficient 3.0L V6 may also be offered, as could possibly be an even more efficient four-cylinder.
Visually, think of a shrunken CTS with the same abbreviated trunk, although the headlights are more pronounced as they follow each fender further back towards the windscreen. Expect a sportier two-door coupe to surface some time after the sedan, with a convertible and even a wagon possible, if the CTS wagon proves to have legs.
