Cadillac building BMW 1-series rival

Cadillac could have a new premium small car to rival the BMW 1-series by the end of the decade. AutoWeek has uncovered details about a new rear-wheel drive entry-level Caddy that would be positioned below the Europe-only mid-sized BLX sedan. GM’s Bob Lutz has previously mentioned that a smaller Cadillac is being considered among several other models, and would be worthwhile in improving Cadillac’s reputation in Europe.

Premium hatches have sold well in Europe for years, and the market is just too lucrative for GM to ignore any longer. If built, the new baby Caddy would compete against the likes of the BMW 1-series, Mercedes-Benz A class and Audi A3, and has a lot of catching up to do. Lutz was very tight-lipped about the car during an interview at the Paris Motor Show, with the only comment being that the 1-series will be the benchmark to which the Cadillac small car will compete.

The car will be introduced initially with a four-cylinder engine mounted longitudinally with a rear-drive layout. However, such a design will require the development of an all-new platform, which could also be used for a rear-drive successor to BLX. GM might get its Australian arm, Holden to develop the new architecture that could come in both rear and all-wheel drives. Holden previously released the Torana TT36 concept (pictured above) back in 2004, which was a rear-drive car built off unique platform, and this could form the basis for the new Cadillac.