New Cadillac luxury sedan to be built in GM Oshawa plant

General Motors will launch two new luxury cars in its Cadillac lineup in 2012. The Cadillac XTS large luxury sedan will be built at GM's Oshawa assembly plant where the company will invest $117 million to prepare for the new model and create or retain up to 400 new jobs. The XTS will be launched in the spring of 2012. It is based on the XTS Platinum Concept unveiled at the 2010 North American International Auto Show in Detroit. It will offer an advanced front-wheel drive and all-wheel drive system.

Along with the new Cadillac XTS, GM will launch a new compact luxury sports sedan codenamed ATS. The two new models will bracket the Cadillac CTS Sedan, Coupe and Wagon family. The ATS, which will be launched in the summer of 2012, will give the brand a rear-wheel drive luxury sports car to compete head-to-head with the BMW 3-Series, Mercedes-Benz C-Class and Audi A4 in the luxury market's largest segment.

The Oshawa plant already builds the Chevrolet Equinox and Impala, the Camaro and Camaro Convertible, and the Buick Regal. The plant employs 4,500 people.

GM's North American president, Mark Reuss spoke of GM's strengthening market position, saying that it has moved beyond merely surviving to "thriving" with a linu-up that's stronger in more segments than it has ever been. "The Cadillac Renaissance that started with the CTS is still going strong," Reuss said. "The XTS continues Cadillac's heritage as the leader in large luxury cars while the car we've codenamed ATS starts a new chapter for Cadillac in the luxury market's C-segment."

Meanwhile, GM announced that it earned $2.5 billion in the second quarter of this year, almost doubling its profit from the previous quarter. Revenue in the quarter ending June 30 rose 19 per cent to $39.4 billion. It was the company's sixth consecutive profitable quarter. GM has sold more than 1.2 million vehicles to date in 2011, a 17 per cent gain over the same period last year.