In late 2007 Cadillac general manager Jim Taylor revealed that the current STS and DTS models would be dropped at the end of their respective product cycles in favor of a single luxury sedan. While General Motors’ financial woes led many to believe that the new Caddy flagship model had been put on hold, the luxury division’s marketing chief has revealed that the STS/DTS replacement is still in development but will be preceded by a sub-CTS model.

Speaking with TheDetroitBureau, GM exec Steve Shannon explained that the elimination of Hummer, Saab, and Saturn will be beneficiary for GM’s other brands as it will leave extra resources for them. In the case of Cadillac, we will see the launch of the new SRX, CTS SportWagon and Coupe, as well as the eventual sub-CTS and flagship models.

The "sub-CTS" would be a 3-Series contender slotted under the CTS and would likely be Cadillac’s highest volume model, Shannon explained. This won’t be a just another BLS but a brand new global model with “dedicated architecture and content.” The new car is tipped to be based on a compact RWD platform currently development at GM called Alpha. Shannon went on to reveal that the compact four-door sedan could be on sale within the next “24 to 30 months” and may spawn hatchback and convertible versions. A diesel version is also being considered for the U.S.

As for the STS/DTS replacement, Shannon said the car would need to be bigger than the STS though it still needs to be fuel-efficient and meet toughening global standards for fuel economy. He wasn’t willing to give a release date for the car but with the STS and DTS being withdrawn from the market in the near future the new Cadillac flagship should be on sale early next decade.