There is bad and (really) good news. Let’s start off with the bad news: the apparently-FWD Cadillac DTS replacement does exist, wearing XTS and XTS4 designations that indicate the car will be made available with all-wheel drive. As I’ve said before, the fact that it is front-wheel drive is a major disappointment for what is supposed to be Cadillac’s flagship. However, from a styling point of view reviews of the car were glowing. They said that the car was “Sixteen-like” in it’s appearance.

Now to the really good news: a Cadillac 3-Series fighter like I’ve talked about a lot is coming and it’s called the ATS. Best of all, it’s based on a rear-wheel drive platform – in other words it will be a true competitor to the benchmark 3-Series. To me this is huge and shows that they finally do get it when it comes to at least one model in the Cadillac lineup.

Sources say the car has styling similar to the recently introduced Converj Concept and that Cadillac is aiming for the ATS to overtake the CTS as the brand’s highest-selling model. This is very exciting, I can’t wait to see these new models introduced.

I had hoped that wasn’t the case. It just makes no sense for what Cadillac is supposed to be and stand for, especially with a resurgent Buick in the equation now. But, I knew from GM anything was possible.

Before this recent news about a XTS, GM was planning to produce a Cadillac flagship based on Holden’s Zeta platform. Zeta underpins the Pontiac G8 and Chevrolet Camaro here in the United States. The program was given the designation DT7 (an internal name most likely) that stemmed from the car it was supposed to be replacing (“D” for DTS) and the car it was going after, the 7-Series – hence the “7″.

The idea for DT7 made sense, and was part of what I have promoted – covering the three main BMW model lines 3-Series, 5-Series and 7-Series with RWD Cadillacs to do battle against them. Proof of BMW’s strategy? Look at who is set to take the luxury sales crown this year.

With GM’s severe financial problems and resulting bankruptcy, the program was delayed. Now the company, fresh out of bankruptcy, is said to be restarting the project with a different platform. Not Zeta, but Sigma – the same platform that underpins the Cadillac CTS.

Yes, yes, yes! Sigma is an platform exclusive to Cadillac and it should be used extensively. Someone is using their head! If this is true, it bodes VERY well for Cadillac. This is what the brand has needed all along. Look at what Jaguar has done with it’s XJ!

Cadillac needs a new, show stopper flagship of it’s own to vault it back into the realm of high-class motoring. For Cadillac’s sake I hope this news is true. It would give me hope for the future of the brand, and indeed all of General Motors.

As such, rumors have been swirling for the past year or more about what it’s replacement will be. Most have them have centered on Cadillac dropping both the STS and DTS models for a new model, likely to be dubbed XTS.

Now a new report has come out that says the car will be based on the Opel Insignia. What? Yes, you heard that right. To me, I think this is ridiculous. Does Cadillac want to be a serious luxury contender or not? If it does, then it needs to produce a viable Zeta-based RWD 7-Series competitor, not a new flagship based on a Opel mid-size sedan. On one hand the report doesn’t seem believable, on the other with GM anything is possible (and I don’t always mean that in a good way).

Buick? Maybe. Buick could be positioned as GM’s FWD Lexus competitor. Not Cadillac though. Cadillac needs a clear goal; it needs to go after BMW with dedicated, Cadillac-specific models and RWD platforms. Otherwise Cadillac and Buick’s missions will be confused. As good as a new Insignia-based model might be, I think Cadillac deserves better. This isn’t what I had hoped for Cadillac as part of a ”New GM.”