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We learned last week that Cadillac cancelled plans to build the V12 XLS flagship sedan due to the current economic conditions and the high gas-prices. It will instead focus on a replacement for the STS and DTS. According to Automotive News, Cadillac will also introduce a small sedan with a 4-cylinder engine in the U.S. by late 2010.

The 2011 model will be built on a rear-wheel-drive architecture and executives are also considering offering a V6 option. There is debate amongst executives is whether U.S. customers will be satisfied with only a 4-cylinder option, even if it gets turbochargers.

“There is a big debate as to whether it is four only. I think that is...

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New small 4-cylinder Cadillac sedan due out in 2010

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