Cadillac is well underway in developing a strong business case to add two new sub-$30,000 vehicles to its luxury lineup. The new cars will go up against the latest affray of small vehicles from the German luxury marques and could be in showrooms by the end of 2009.

The first vehicle will be a mid-size crossover sharing a platform with the next-generation Chevy Equinox and will likely carry the BRX title. Another plan is to build an updated version of the small BLS sedan in the United States, which will be positioned below the CTS and come with the choice of either four or six-cylinder engines. Unlike the current BLS, the new version will be fully designed and built in the U.S. and may include the European version as well.

Cadillac’s plan to target the lower end of the luxury market coincides with plans to drop further development of a proposed V-12 engine and a new S-Class and 7-Series competitor. According to General Motors Company [NYSE:GM] insiders, concerns of fuel-economy and financial considerations are what have caused this shift.


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