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Cadillac can’t afford to sit out on the small-car craze sweeping through luxury automakers.

Buyers shopping for a badge rather than a car look right past Cadillac’s $33,990 ATS to the Mercedes-Benz CLA-class and the Audi A3, both of which start under $31,000. This compact class, relatively new in the U.S., is the fastest-growing segment globally in the luxury-car business.

In an interview with Car and Driver, Cadillac marketing chief Uwe Ellinghaus all but confirmed that the company is working on a new small sedan to shore up the brand’s bottom end. Specific details on the sub-ATS sedan are scarce right now, but Ellinghaus did reveal one key detail that could set the Caddy apart from the competition. Cadillac’s top leadership is in agreement that they don’t want to follow the German luxury brands by building new cars on a front-wheel-drive platform.



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