Sign of the times? Cadillac to go smaller

General Motors

Automotive News, a subscription-only industry publication, published a few articles recently that discussed what GM's planning for the future. If the reports are accurate, we should all get used to seeing smaller cars, even from marques like Cadillac.

GM's car czar, Bob Lutz, is a firm believer in the idea that Americans will accept smaller cars, even premium ones, as long as they deliver a quality driving experience. This approach already works in Europe, where for years drivers have dealt with fuel that's far costlier than what we pay in the U.S.

In keeping with the idea that small cars can indeed work, Cadillac is going to downsize by adding a sub-CTS sedan that will have a four-cylinder powerplant. According to Caddy general Manager Jim Taylor, the raging debate in Detroit is whether to offer an optional V6 or to make it a four-cylinder only.

Note to GM: You don't need a six to produce uplevel power, as you've already demonstrated with the turbocharged Saturn Sky and Pontiac Solstice. The 260-horsepower 2.0L turbo four in those cars packs a wallop while delivering impressive fuel economy at the same time.

If GM is truly serious about revamping the lineup in the name of higher efficiency, it'll show some guts and nix the six in this new entry-level Cadillac -- it would be entirely superfluous. This move would also make the V6-powered CTS (shown above) a clear step up for buyers who eventually decide to upgrade from the small car.

Regardless of what's under the hood, expect to see the new small Cadillac in late 2010 as a 2011 model.

Another rumor that's taken flight is that Cadillac will be the next brand to get the range-extended plug-in hybrid system set to debut in the Chevy Volt. This seems like a no-brainer, because it would give Cadillac a true "green" flagship (sorry guys, the Escalade Hybrid does not fit that description) that would combine plug-in functionality, high-style, lofty fuel economy, and very premium-level appointments.

Most importantly, GM could price the Cadillac luxo-green machine accordingly, since its market positioning would be very different than that of the Volt, where maintaining as low an asking price as possible will be essential to its success.

This summer's high fuel prices showed that Americans are indeed sensitive to market forces and will react accordingly. People drove less and dumped gas guzzlers like bad habits when they could.

The automakers need to be attuned to the market's demands as well, and if that means going with more smaller cars, even upscale ones, then so be it.

Alex Nunez's blog posts are provided by LifeWire, a part of The New York Times Company.