General Motors (GM, Financial) luxury brand Cadillac took the wraps off its compact crossover SUV, the all-new XT4 in New York. Cadillac’s new car is somewhat between a compact and a subcompact, which will be taking on the automaker’s German rivals. The luxury brand has been expanding its crossover lineup and the addition of XT4 is a crucial step for the company.
The XT4 will help General Motors build an effective lineup for Cadillac and revive the struggling sales in the U.S. market. The car’s entry will help Cadillac balance its sedan-focused lineup with crossovers and SUVs. This is important particularly at this time as the preferences of American buyers are shifting in favor of crossovers and SUVs.
In line with the competing cars, the XT4 comes with turbocharged power and has an option of front or all-wheel drive. Cadillac’s latest addition, which comes beneath the midsized XT5, adorns a complete suite of the latest and most innovative onboard technology. This is definitely going to be a good treat to car enthusiasts and crossover shoppers.
Into the details
General Motors has launched numerous crossovers and SUVs under various brands in the past few years but the XT4 holds a different substructure. The crossover is manufactured on the E2 platform, which is structurally quite similar to the Chevrolet Malibu sedan. As such, the XT4 beholds a low-slung appearance, which is complImented by a front-end design, drawing resemblance from Cadillac Escala.
Cadillac is offering three trim levels of the XT4, including luxury, premium luxury and sport. The three versions offered is referred to as Cadillac’s Y strategy. Luxury would be the base trim, while premium luxury and sport would be its premium offering. Both premium luxury and sport are priced similarly.
The starting price of Cadillac XT4, which is scheduled to hit the dealers’ showroom this fall, will be $35,790. That comes in slightly cheaper than the traditional midsize luxury offerings, such as the BMW (BAMXF, Financial) X3, Mercedes-Benz GLC300 and Volvo (VOLVY, Financial) XC60. It should be noted that the XT4 is marginally smaller in size compared with its competitors, but more spacious than the subcompact BMW X1, Mercedes GLA and Volvo XC40.
The standard features for all the three trims include LED headlights and taillights, and the eight-inch CUE infotainment system with four USB ports. All the models of the XT4 will be powered by a 2.0-liter turbocharged I4 engine, which would generate 237 horsepower with 258 pound-feet of torque.
What difference will the XT4 make
General Motors has been aiming at giving effective competition to the German luxury brands: BMW, Mercedes-Benz, and Audi (AUDVF, Financial) with its range of offerings under the Cadillac brand. However, Cadillac’s inadequate product lineup is the biggest drawback. The brand offers a wide range of luxurious sedans, however, mainstream buyers in the U.S. and China are more inclined towards crossovers and SUVs.
Currently, Cadillac dealers have the midsized XT5 as the only crossover offering under the Cadillac brand. With XT4, Cadillac will be able to better compete with and take on the likes of its German peers that have been rolling out new variants of compact crossover SUVs more frequently. The XT4 is expected to brighten the lackluster sales of Cadillac in the U.S. when it arrives this fall.
Disclosure: I do not hold any position in the stocks mentioned in this article.
