General Motors is going to invest $175 million at the Lansing Grand River assembly plant in order to get it ready for the company’s upcoming sedan lineup overhaul.
The company has begun installing new tooling and equipment at the factory that builds the Cadillac ATS and CTS sedans, as well as the Chevrolet Camaro, ClickOnDetroit reports.
Cadillac will replace the ATS, CTS and XTS sedans with a new CT5 as part of its new strategy, which includes “rebalancing” their sedan portfolio. What it means is that the compact ATS won’t get a direct replacement, as well as the XTS, instead Cadillac will launch an all-new CT5.
Cadillac hoped the ATS would successfully compete with the BMW 3-Series but sales never really caught on. Similarly the XTS never sold that well, not to mention it overlapped with the brand’s CT6 flagship. Sales of the ATS fell 39 percent last year, while CTS sales saw a similar drop of 35 percent. XTS sales were also down 27 percent.
Cadillac refused to say when exactly the new CT5 will come out, only saying that the next-generation models will debut by the end of 2021. The brand has previously said that it will launch seven new models by 2021, with only two of them being sedans.
The second sedan is reportedly going to be a new entry-level model that will compete with rivals such as the Audi A3 and the Mercedes CLA.
The new investment in the Lansing Grand River factory is part of Cadillac’s $500 million investment in U.S manufacturing in a bid to boost sales in North America. Cadillac has also invested recently in its plants in Texas and Tennessee in order to expand the output of the Escalade and accommodate the production of the new XT4 and XT5 SUVs.
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