Cadillac has had to cut back on its plans due to the financial difficulties faced by parent company General Motors. Already, it has scaled back its European expansion plans and it has put on hold the development of a new diesel powerplant. However, Cadillac’s ambition to have a new rear-wheel-drive compact sedan to go up against the BMW 3-Series and Audi A4 seems to be on track. Rumored to be called the ATS, this new compact model is anticipated to go on sale within the next two years as a global model. In the US, it will be launched as a new entry-level car; however, in Europe, it will replace the BLS. Launched back in 2006, the BLS had been performing poorly, having sold only 7,356 units until 2008. The car has since been disposed. Referring to the car’s replacement, new Cadillac general manager Bryan Nesbitt confirmed that a new high-performance small car was in the works, not just for Europe, but for all of our markets.

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