Cadillac Challenges Mercedes-Benz by Pitting the Escalade Against the C-Class [Video]

We think most of you will agree with us when we say that, for the same reasons the Cadillac Escalade is extremely profitable, it also doesn't quite fit the brand's current image being sort of a throwback to the glory days of the classic American cruiserships.

But this didn't stop General Motors from raising the ante in yet another provocative commercial for Cadillac that follows the CTS-V spot featuring the Ferrari 458 Italia.

This time, the General took the Escalade and pointed its ammo towards Mercedes-Benz and its C-Class sedan. The video spot shows the big Caddy V8 beating the C300 on a straight line duel, and then…hauling back the Merc.

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SCOOP: 2013 Cadillac ATS Hits the Road for Testing

Here's another chance to take a look at the upcoming 2013 Cadillac ATS, GM's answer to the executive compact sedan segment dominated by the likes of BMW's 3-Series, the Audi A4 and the Mercedes-Benz C-Class.

And just in case you're wondering, the introduction of the ATS will lead to a larger next-generation CTS to better compete against cars like the BMW 5-Series and the latest Lexus GS.

Our scoop photographers captured the 2013 Cadillac ATS while testing in Europe. Even though the prototype is clothed in camouflage, we manage to get a taste of the car's size as well as Cadillac's edgy design language with prominent creases running along sides and the front and rear ends of the ATS.

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Video: GM CEO Mark Reuss Drives us Through the 2013 Cadillac ATS

Following Cadillac's unsuccessful efforts to enter the compact luxury sedan segment and challenge Germany's finest including the Audi A4, BMW 3-Series and Mercedes C-Class with the European market BTS that was a basically a Saab 9-3 dressed as a Caddy, General Motors appears to have learned its lesson about cutting corners.

The Detroit carmaker is now developing a brand new competitor for the 3-Series from the ground up based on a rear-wheel drive platform. The entry level Cadillac is codenamed ATS and it is destined to enter production next summer (2012).

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General Motors Takes Over Japan's Import Operations

General Motors has announced that it is consolidating imports to Japan, terminating the cooperation with its local partner, Mitsui Bussan. The move, which will go into effect on November 1, is intended to improve GM's image and, more importantly, streamline the sales process.

Since 1992, Mitsui Bussan has imported a total of 12,000 GM models that were mostly sold through its own dealer network, although some were distributed by GM official dealers. Its sales have been falling since 1995.

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Report: GM May Build a Production Model Inspired by the Ciel

“If you build it, he will come”; now this may be the whisper heard by Kevin Costner in the 1989 movie Field of Dreams, but it also stands true for any product –and especially cars.

No matter what your image or marketing strategy, in the long term the product itself makes or breaks a carmaker. Recent “rags to riches” stories include Hyundai, Kia and Skoda, all of which a little over a decade ago were offering below par, or at best acceptable, models but are now posting record sales year after year thanks to their new, much improved range.

Cadillac, once the default choice in the luxury car segment in North America, witnessed a streak of uncompetitive products ruin its image and sales before GM buckled up and began reshaping the brand starting with the CTS.

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Guess Who’s Back Again? Bob Lutz Returns to GM as Advisor

No matter the age, a petrol head like Bob Lutz can't stay away too long from the car industry. In fact, even though GM's former vice president and product czar had retired in the May 2010, the 79-year-old has been providing advice to the firm's executives without pay ever since.

Now, GM decided to formally hire Lutz as an advisor to provide counsel to the senior leadership team of the company.

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