Cadillac unveils ATS small car as assault on European dominance

DETROIT -- Cadillac introduced the new ATS sports sedan Sunday as a worthy rival to the best European small luxury cars and a step toward transforming the 110-year-old U.S. brand into a global powerhouse. The car debuts at the auto show here this week after an unveiling by GM's top executives Sunday evening at the College for Creative Studies, one of the nation's top automotive design schools. It goes on sale in late summer.

GM North America President Mark Reuss said the ATS was developed "to meet or beat the absolute best compact luxury cars in every measure" and said it represents "the new soul of Cadillac."  Reuss said that's why GM built the sedan on an all-new vehicle platform. He said GM could have developed it on the same platform as the existing CTS, which is also rear-drive, or from another vehicle architecture in GM's stable. "But such a vehicle would never become the car to finally challenge the German cars at their own game and win," Reuss said. "This one, however, is that vehicle."

The ATS will be slotted below the mid-sized CTS sedan, the brand's top-selling car. Hall says the ATS has a chance to eventually surpass the CTS as Cadillac's volume leader. The ATS' exterior design continues Cadillac's so-called art-and-science theme of angular lines and crisp edges, with narrow, swept-back LED headlights and plenty of creases. It's nearly 4 inches longer than the 3-series sedan, with a wide stance.

The interior, which features carbon-fiber and wood trim, will offer Cadillac's new technology interface that features an 8-inch LCD touch screen that lets the user flip through displays much as on a smartphone. The ATS will be built at a GM plant in Lansing, Mich., alongside the CTS coupe, sedan and wagon. Industry sources have said GM eventually will build an ATS coupe and possibly a convertible.

The ATS will be the first GM vehicle to get a new 2.0-liter turbocharged four-cylinder engine that puts out 270 hp and 260 pounds-feet of torque. GM plans to roll the engine out to other models, too. Reuss said a diesel engine will also be offered during the ATS' first product cycle. Other engines include the 3.6-liter V-6 used on the CTS and the SRX, which will be sold only in North America, and 2.5-liter naturally aspirated four-cylinder. They'll be combined with six-speed automatic and manual transmissions. All-wheel drive will be optional.

Lighter, more nimble

At about 3,400 pounds, the ATS' curb weight is lighter than some key rivals', including the Audi A4's 3,505 pounds and the Mercedes C series' 3,560 pounds. The BMW 3 series weighs 3,362 pounds. GM says fuel economy will top 30 mpg. An aluminum hood and natural-fiber door-trim panels help trim the ATS' weight, improving the car's fuel economy and making it more nimble. In addition to the ATS and XTS, Cadillac plans to introduce another new car, the ELR, a plug-in hybrid based on the Chevrolet Volt.

Dave Versical contributed to this report