Cadillac Considering New Compact SUV Below XT5
Caddy Could Enter Profitable Segment by End of 2018
Recognizing the white space at the bottom of its crossover lineup, Cadillac may enter the profitable compact-SUV segment next year. Slotting in beneath the midsize XT5 will be something sized closer to the hot-selling BMW X3, Audi Q5, and Acura RDX.
Speaking to the Detroit News, Cadillac President Johan de Nysschen expressed worry that the luxury-sedan market is shrinking while luxury SUVs explode in popularity. As such, de Nysschen says a compact SUV will hit the market in the latter half of 2018.
Likely called XT3, the Caddy will be shorter than its XT5 brother, which stretches 189.5 inches long, sitting over a 112.5-inch wheelbase. It’s possible the XT3 will use a version of GM’s Delta platform, which also sits under the GMC Terrain and Buick Envision. Expect a wheelbase of around 108 inches and an overall length of 180 inches, putting the XT3 closer in size to the BMW X3, Lexus NX, and Lincoln MKC crossovers. Offering buyers more accessible entry into a Cadillac crossover should help the beleaguered company achieve wider acceptance in the market, so we expect the XT3 to start around $33,000.
It’s also likely Cadillac will get a larger crossover to slot in between the XT5 and Escalade. Probably called the XT7, this vehicle will be sized like the Chevrolet Traverse and Buick Enclave, offering three rows of spacious seating and a front-drive–biased powertrain. This luxurious crossover would be ideal for wealthy suburban families who need more space than a BMW X5 or Acura MDX can offer but who don’t want to take the financial hit of stepping into an Escalade.
Both the XT3 and XT7 could face a challenge due to their plebian roots. A common complaint levied against General Motors’ premium offerings is their close relation to cheaper vehicles. In the case of the old Cadillac SRX, it was occasionally derided as a warmed-over Chevrolet, and a new Equinox- or Traverse-based crossover could have the same problem, particularly in the face of bespoke premium offerings from Mercedes-Benz, BMW, and Audi.
Still, with crossovers on the upswing thanks to low gas prices and ever-increasing efficiency, more Caddy SUVs should be a good thing for the company’s bottom line.
Source: Detroit News