XT4 Keys Cadillac’s Growth Strategy

NEW YORK – Cadillac’s crucial small luxury XT4 CUV launches into an increasingly crowded segment, but leaders of General Motors’ luxury marque are confident the new vehicle will succeed, buoying the brand in the process.

The XT4 this fall joins Cadillac’s two light-truck entries, the Escalade large luxury SUV and XT5 CUV, at a time when those models have carried the brand as consumers have veered sharply away from cars.

XT5 sales rocketed 73.0% to 68,312 in 2017, while the Escalade chipped in about 38,000 units to push overall Cadillac truck sales up 5.4%. At the same time, sales of wreath-and-crest car models plunged 27.4%, driving an 8.0% decline in U.S. deliveries to 156,440, the brand’s lowest number since 2012.

The turnaround begins with the XT4, part of a $12 billion investment in product that also includes another CUV slightly larger than the XT5 and an all-new Escalade based on the next-generation truck platform entering the market this fall. Before 2021 the brand also will add new sedans for the middle and entry end of the car segment.

“The first-ever ’19 Cadillac XT4 expands our successful SUV lineup to a segment where Cadillac has never been before,” says Cadillac President Johan de Nysschen. “And it sets off a dramatic expansion and elevation of the product range that will see a new Cadillac virtually once every six months through 2021.”

GM expects the product infusion to push Cadillac global sales to nearly 600,000 units annually by 2021 and profitability up 100%, with the U.S. playing the main role in driving profits.

Built on GM’s E2 transverse-mounted, front-engine steel unibody architecture, the 5-seat XT4 will come in three trim levels – Sport, Luxury and Premium Luxury.

The sole powertrain is an all-aluminum 2.0L, direct-injected, turbocharged DOHC I-4 producing 237 hp and 258 lb.-ft. (350 Nm) of torque. The engine is equipped with stop/start technology and features what GM says is an industry-first “tri-power” designed to optimize performance and efficiency by having three distinct operating modes, including high and low valve lift and cylinder deactivation.

Power is routed to the front wheels or optional all-wheel drive via a 9-speed automatic transmission. The AWD features twin-clutch operation allowing complete disconnect of the propshaft and rear axle to save fuel.

Tech-laden XT4 interior.

Estimated fuel economy is 25 mpg city/30 highway/27 combined (9.4-7.8-8.7 L/100 km).

A wide array of technology features are available, however Cadillac’s top-shelf Super Cruise hands-free adaptive cruise control system is not among the options. An active suspension featuring continuous damping that adjusts the shocks every 2 milliseconds is available on Sport models.

Starting at $35,790, dealers are taking orders now for the XT4. The XT4 will be built at GM’s Fairfax assembly plant in Kansas City, KS.

[email protected] @bobgritzinger