Update: Cadillac spokesman David Caldwell has confirmed that rumors of Cadillac’s planned compact sedan being based on the front-wheel-drive D2XX platform of the Chevrolet Cruze and other General Motors Company [NYSE:GM] compacts were false.

Cadillac is working on a new compact sedan positioned below its ATS to target German rivals like the Audi A3 and Mercedes-Benz CLA.

In early 2015 brand boss Johan de Nysschen said the new compact sedan would feature rear-wheel-drive underpinnings to help differentiate it against its front-wheel-drive foes.

But GM Inside News, citing multiple sources, reports that Cadillac is now more likely to borrow the front-wheel-drive D2XX platform already found in the latest compacts from GM including the Chevrolet Cruze.

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2016 Chevrolet Cruze unveiling, Detroit, June 2015

2016 Chevrolet Cruze unveiling, Detroit, June 2015

The move, similar to Volkswagen Group’s use of the MQB platform in both the Audi A3 and mainstream VW Golf, makes financial and practical sense though is unlikely to please enthusiasts. Then again, enthusiasts represent only a sliver of the general car buying public. Recall, BMW in 2010 said 80 percent of 1-Series owners didn't know which of their car’s wheels were actually doing the driving.

Other items reported by GM Inside News include availability of turbocharged 1.5- and 2.0-liter engines and an 8-speed automatic transmission. Unfortunately, there was no mention of when we might see the car.

Sadly for Cadillac enthusiasts, the latest news comes just weeks after it was reported Cadillac had dropped plans for a new flagship sedan that was to be called the CT8.

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