General Motors has confirmed it will launch a new entry-level Cadillac at the end of 2012.
The new saloon, dubbed ATS, will slot in below the CTS, competing against the likes of the Audi A4, BMW 3-series and Mercedes C-class. "We've ceded this segment of the market to our foreign competitors for far too long," said GM boss Dan Akerson.
The new car will be based on GM’s rear-wheel-drive Alpha platform, which is also set to also underpin the next-generation CTS and Chevrolet Camaro models.
The car will be built at GM's Lansing assembly plant, which the firm is investing $190 million (£118 million) in readiness for the new small saloon. Akerson said of the plan, which will also create around 600 jobs: "This investment demonstrates GM's commitment to Cadillac and to a strong US manufacturing base."
Although precise details of the car have yet to be revealed, GM has previously said that the ATS will feature hi-tech engines and optional all-wheel drive.