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Despite being priced to compete with the smaller BMW 3 Series sedan, the Cadillac CTS is as large as the German marque's 5 Series. Similarly, the STS competes with the 5 Series in pricing but matches the top-level 7 Series in size. Rumors of a smaller Caddy to zig alongside the benchmark 3 Series in size have been running rampant for over a year and now we hear the sedan may have finally been green-lighted. Expect the new entry-level Cadillac to be built atop GM's upcoming rear-wheel-drive Alpha platform. We have had nothing but good things to say about the latest Cadillac CTS, so we naturally have high hopes for the new, smaller Caddy sedan, which could also sprout a coupe and a convertible. To this point, GM has never quite hit the sweet spot with the premium division's smallest offering in Europe, the Saab 9-3-based BLS.

[Source: Motor Trend]