Cadillac is studying an idea to build a large flagship sedan to compete against the Mercedes S class and BMW 7 series, Mark Reuss, GM's president for North America, said in an interview with Automotive News. In May, Reuss remarked that GM is in discussions for a new flagship as the company outlines its go-global strategy for Cadillac. A flagship would be a follow-up to GM’s positioning of its Cadillac's lineup to go head-to-head in each segment with BMW, Mercedes and Audi. As an example, Cadillac is launching this summer the ATS compact sedan, touted to rival the BMW 3 series. Cadillac will also roll out in 2013 a redesigned and effectively longer CTS sedan, which is lined up against other models in the mid-sized luxury segment, like the Mercedes E class.
According to Reuss, he is “a fan of going right at those segments” and beating their rivals in each segment. He added that he would love Cadillac to have a flagship. Although GM is rolling out the XTS large sedan this month, its tag price is still lower than the 7 series, C class or Audi A8. Reuss said that Cadillac flagship could turn into a reality only if GM executives decide that having one is the best use of the carmaker’s limited resources.
GM's president for North America acknowledges that the way they fund Cadillac has been from everything else in GM, which makes the brand have a “very reduced scale” in terms of individual architectures, engines, technology. The company is expected to launch new Cadillac models next year, including the redesigned CTS, the Escalade SUV and the ELR plug-in hybrid coupe.