The present CTS model is doing fine as an average sized sedan. It’s reviews are average, however, the design and technology are stuck the last generation of General Motors’ sedans.

The rumored replacement took a long time to see production because of the state of the United State’s economy as well as the bankruptcy threats that plagued General Motors. Fortunately, the market sees a turnaround the new XTS might help GM become steady.

According to a report published in National Post, production won’t start pronto. It will start sometime in December 2011 at the GM plant in Oshawa, Ontario. When it rolls off the assembly line, the new Cadillac XTS takes the position as the largest 4-door sedan cruising from a luxury lineup.

Several cars like the Buick Regal, new Chevrolet Impala, and Camaro will join the production of the new Cadillac XTS model in the Ontario plant. The Buick Regal is said to be a new version of the old Opel Insignia.

We are still waiting for the official news and details about the sub- CTS model that were confirmed before by General Motors.

The decision to slash the Cadillac dealerships comes after studying the position of the brand in the market. Checking the luxury segment of the market, rivals like Lexus, Mercedes-Benz, and BMW are selling more units with fewer dealerships.

GM plans to adapt the strategy of their competition and increase the sales stats. Lexus dealers sold about 1158 cars on average in 2008 with only 226 franchises. Cadillac, on the other hand, has 1400 dealers but a store sold on average only 110 units.

The figures of Cadillac also have similar ratios compared to the dealerships of Mercedes and BMW. Top executives of the brand admit that Cadillac is out of sync in terms of retail in the luxury segment of the car industry.

Most likely, the car manufacturer will demand higher volume of sales from the large dealerships that they have. They believe that will be the key for the survival of the brand and the only way they can cut their operations cost.

The exact number of dealers that will be severed from the system has not been revealed yet. Basing on available industry figures, it seems that Cadillac will need to axe hundreds of dealers to match the performance figures of their rival foreign rivals.