LOS ANGELES – Cadillac's European rivals own 85 percent of the luxury car market and Cadillac is fighting them with both arms behind its back.
There are nine model segments in the luxury market and right now Cadillac is competing in only five of them. The XT5 doesn't fill that gap but it makes sure Cadillac has a contender in the most important segment where Cadillac is second only to the Lexus RX350.
Up next in 2016 is an even smaller crossover.
"This the car that millennials want more than any other. A compact SUV that has versatility. It feels right for business. It feels right for the family. It feels right for other activities," said Uwe Elinghaus, vice president of Cadillac marketing.
The XT5 is nearly 300 pounds lighter than the SRX it replaces. It's also lighter than competitors at Audi and Mercedes. It has 3 inches of additional legroom and rear seats that now recline and slide back for greater comfort. The expected base pricing is less than $39,000.
Moreover, we've learned General Motors is getting technology advice from a legendary product visionary: Apple co-founder Steve Wozniak, who appears in Cadillac ads. Wozniak will be an unpaid consultant and contribute to the design of the new CUE Infotainment System.
"You can't go ask someone to whistle next year's tune," said Mark Reuss, vice president of GM Global Product Development. "That's part of the magic of the auto industry. We have to know what people are going to want even before they can articulate that. And someone like (Wozniak) can really help us do that. So it's a big deal."
Even though the SRX is long in the tooth -- debuted 7 years ago -- its sales are up 25 percent year-to-date. So the new version doesn't have the added burden of overcoming the traditional loss of momentum most aging models see.
It will be 5 years before they can compete in all major segments the world over.
LISTEN: Guy Gordon at LA Auto Show