To combat declining sales and the fallout from US fuel prices hovering around the $3 per gallon mark, Cadillac is considering adding hybrid options to its entire lineup. Sales in the US fell 3.4% last year, the first major drop since 2001, and sales are down a significant 7.2% for the first five months of this year.

Cadillac’s core lineup is made-up of powerful large sedans and heavy SUVs, and management are confident that hybrid technology will be a part of the luxury brand’s future.

"Pretty much every program I am looking at going forward has got a hybrid as part of it," John Howell, Cadillac's product chief, told reporters from Bloomberg.

The first hybrid Caddy will be the 2009 Escalade, which has been spotted recently in spy shots with new ‘Hybrid’ markings in its interior. The SUV will adopt GM’s new two-mode system, which is said to improve fuel-economy by 25%.