Cadillac has received green light from General Motors to develop a large flagship sedan which will help sell the brand in China, where German luxury brands dominate the premium segment.

According to Automotive News, the new Cadillac is part of an ambitious scheme to take on BMW and Mercedes in all segments. The American carmaker ‒ once the epitome of luxury ‒ sold only about 60 percent as many vehicles as BMW and Mercedes-Benz in the US last year. Cadillac sales in China are only one-tenth of Audi.

The recently approved range-topping Cadillac will be built on a rear-wheel-drive platform dubbed Omega. The large Cadillac will take on the Audi A8, BMW 7-Series and Mercedes-Benz S Class. Design of the full-size American flagship sedan will be inspired by the Ciel Concept, the four-seat convertible that Cadillac displayed at Pebble Beach last year. As for the engine, a 3.6 liter V6 as well as a V8 paired with an eight-speed automatic transmission are rumoured.

Furthermore there is the new ATS compact sedan, designed to rival the BMW 3-Series and Mercedes C-Class, which is also part of the plan to compete with the German brands. Scheduled to arrive next year is the a redesigned and CTS sedan, which will compete with the Mercedes E-Class and BMW 5-Series.

Besides these models, the next generation of the Escalade is in the works as well. The large SUV is expected to be launched in the second half of 2013. The coupe and convertible version of the ATS will follow in 2014, as well as the next-generation CTS, a redesigned SRX, and the plug-in hybrid sports called ELR.

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