General Motors, which is looking to rejuvenate its struggling Cadillac brand, will be producing a new, high-end Cadillac sedan next year which aims to challenge those of its German rivals.
The vehicle is widely expected to be introduced by GM within the first half of 2015.
The competitors of Cadillac have been trimming down the size of their vehicles. In response, Cadillac announced that the new sedan will actually be larger.
While no specific details have yet been released by GM for the new sedan, which still has no name, the company described the vehicle as a "top end, high technology" vehicle that GM intends to put in competition against the best cars from the company's rivals from Germany.
Specifically, Cadillac's upcoming sedan will look to challenge the market presence of the BMW 7 Series, the Audi A8 and the Mercedes S-Class, all of which are the flagship vehicles for each of the competitor companies.
The prices of these vehicles begin at about $75,000, with the price easily exceeding $100,000 if buyers choose to purchase most of the optional features and add-ons.
GM will most likely release their new sedan within this price range to be seen as a competitor to the vehicles that the company is looking to challenge.
"The objective for this upcoming model is to lift the Cadillac range by entering the elite class of top-level luxury cars," said Johan de Nysschen, the president of Cadillac, in a statement.
Cadillac, as a brand, has been struggling despite the fact that the luxury car market has been experiencing growth.
The luxury car market in the United States has grown by 14 percent from the start of the year to August compared to the previous year. Sales for Audi have increased by 15 percent, for BMW 12 percent, and for Mercedes Benz 9 percent.
However, Cadillac's fortunes have been the opposite. Overall sales figures for the brand have decreased by 5 percent over the same period, with sales Cadillac's sedans decreased by 15 percent.
"Cadillac still suffers from more of an older demographic," explains Edmunds.com senior analyst Jessica Caldwell.
One thing that Cadillac is optimistic about, however, is the company's performance in China, where its sales reached 50,000 units in 2013.
Cadillac's upcoming sedan, in fact, is looking to take advantage of the fledgling luxury car market in China, according to Boston Consulting Group automotive practice head Xavier Mosquet.
According to Mosquet, European buyers are not interested in large vehicles and American buyers are not willing to spend on a high-end Cadillac. However, Chinese buyers are purchasing large, high-end cars, and are open to switching their purchases from one brand to another, which is enough to justify GM's investment in the new Cadillac sedan.
GM CEO Mary Barra gave the approval for the production to commence in the fourth quarter of 2015 at GM's Detroit-Hamtramck plant.
