At the recent Chicago Auto Show, General Motors’ vice chairman Bob Lutz hinted at the possibility of using an extended version of the Camaro platform to build an all-new ultra-luxury vehicle for the Cadillac division. The car, which would be a potential rival to popular saloons such as the BMW 7-series and Mercedes S-Class, would most likely be powered by an engine “with more than eight cylinders” he said.

Automotive News is now reporting that Cadillac is developing the mechanicals for a V12 powered flagship, which it says will take design cues from the Cadillac Sixteen concept car that was displayed back in 2003. The model’s introduction is part of Cadillac’s overall plan to establish itself as full line luxury brand, and at the same time ties in perfectly with GM’s decision to build more of its vehicles on fewer but more flexible platforms.

In an interview last week, Lutz confirmed that development work of a new V12 engine is well underway in Australia. Engineers will join two of the locally made 60-degree, 3.6L, V6 engines on a single crank to form a monster 7.2L V12 motor that should develop about 600hp with torque up around 540lb-ft. Thanks to direct injection and cylinder deactivation technology, the new Caddy motor would not only be extremely powerful but fuel efficient as well.