Lutz speaks on DTS/STS rumors

Nearly a month ago, rumors surfaced indicating General Motors might scrap plans for a new large Cadillac model meant to replace the DTS and STS. With no official word so far on the rumors, we decided to ask Vice Chairman Bob Lutz for his commentary.

Leftlane: “Up until now the popular rumors has been the DTS and STS will be replaced by a single new model. More recently there have been rumors about that project being on hold. Does Cadillac still need a large model above the CTS?”

Mr. Lutz: “Let me just say that it is in the realm of specific new model information that we haven’t really talked about yet, but generally as we look at our entire portfolio, there is a tendency to reduce investment in engineering on large rear-wheel-drive entries in favor of lighter weight and much more fuel efficient cars.”

While the top executive’s comments don’t provide a definitive answer, it’s clear even a luxury brand like Cadillac is adapt to tough economic times.

Original Story [Aug 12]: Cadillac’s STS and DTS, nameplates which date back more than 30 and 60 years, respectively, both have cloudy futures. General Motors’ Hamtramck, Mich., factory that builds the DTS (which prior to 2005 was known simply as DeVille) is scheduled to switch over to Chevrolet Volt production in 2010. The STS (formerly known as Seville) is built at Cadillac’s Lansing, Mich., factory, which is expected to ramp up production of more hot-selling CTS variants.

Speaking to Bloomberg, auto consulting firm Planning Edge’s Alan Baum suggested that “people still want Cadillacs [but] they want a very different car.”

With a coupe version of the CTS on the way and expected emphasis on more fuel efficient Escalades (which are built in Arlington, Texas, and Mexico), GM is remaining mum on rumors that the STS and DTS would be replaced with a new model. Instead, GM might be focusing on a smaller, more efficient car that would replace the BLS (currently sold only overseas) and slot below the CTS. Sales of the STS and DTS are down 24.7 and 13.9 percent, respectively, from 2007 year-to-date levels.