GM’s SUV battle against BMW X3 image

GM wants to make a sport utility vehicle that will compete with the German X3. A small luxury SUV might build on Cadillac’s gains from the larger SRX sport-utility vehicle.

Cadillac’s vice president of sales, said „GM hasn’t decided yet on a small Cadillac SUV but the fact that Cadillac is becoming more of a global brand will certainly play a role in that decision”.

The U.S. based automaker will attack for the moment with the new ATS sedan that is scheduled to go on sale in the third quarter. Monthly lease prices play a big part in the sale of compact luxury cars, with BMW and Mercedes advertising deals for the 3 Series and C-Class as low as $299 and $349, respectively, on their Web sites last month.
In August GM seems to consider building a luxury version of its Chevrolet Volt hybrid called the Cadillac ELR.

“We have to be as good or better than our main competitors,” Cadillac plans to have fleet sales down to no more than 5 percent of sales, from 10 percent last year, McNeil said.

Sales are rising, too, albeit slowly. In 2011, Cadillac’s total sales increased 3.7 percent

Cadillac’s turnaround has been much slower. Parent company General Motors Corp.’s efforts to remake the brand from a stodgy one that attracts old fogies to a hipper car company have evolved over the past decade or so.