The next-generation Cadillac CTS will be moved more up-market from the 2013 model shown here.

The next new entry into the expanding Cadillac line-up will make its debut at next month’s New York Auto Show, officials with the General Motors division have confirmed.

The unveiling of the next-generation Caddy CTS will follow the January introduction of the ELR plug-in at the North American International Auto Show in Detroit and last year’s addition of the compact Cadillac ATS and high-line XTS models.

While the car coming to New York will replace one of Caddy’s current models, the 2014 Cadillac CTS could certainly be described as an expansion of the line-up as it is expected to be bigger, more lavish and more expensive that the outgoing sedan, taking more direct aim at the likes of the BMW 5-Series and Mercedes-Benz E-Class.

“We are positioning that car as a step up, so there will be a marketing challenge to reposition that car,” Bob Ferguson, the new head of Cadillac, said during an interview with the Detroit Free Press. He was one of several executives with General Motors’ flagship brand to attend the annual National Automobile Dealers Association conference in Orlando, Florida over the weekend.

The original CTS served as the launch vehicle for Cadillac’s distinctive “Art & Science” design language when it made its debut for the 2003 model-year.  Though targeted at the BMW 3-Series, Caddy tried to win buyers over by delivering a slightly larger and better-equipped product than its German rival.

But while the CTS has clearly helped put Cadillac back on the map, it has been struggling the last several years, especially as newer competitors have come to market, including the latest version of the 3-Series and Mercedes C-Class. Compounding the situation, the CTS has been undercut by both the Cadillac ATS model – which was recently named North American Car of the Year – as well as the bigger Caddy XTS.

CTS sales tumbled 14.6% last year, to just 46,979.

Where the previous versions of the CTS were what some analysts described as “tweener” cars, the 2014 sedan will be sized and outfitted more directly in line with the 5-Series, Ferguson and others have confirmed.

The basic design will maintain the basic look of Art & Science but will be somewhat less edgy, Cadillac insiders have hinted, in part to give the larger sedan a more sophisticated and expensive look – but also to try to play into the demands of the Chinese market. Caddy hopes to make some major gains in China, the world’s fastest-growing luxury market but it has recognized that high-line buyers there prefer more traditional, European styling.

As for the interior, TheDetroitBureau.com has been told that the 2014 Cadillac CTS will share much of the basic design cues of the new ELR, a luxury version of the Chevrolet Volt plug-in hybrid. That battery coupe is expected to reach U.S. showrooms early in 2014.

Cadillac has also confirmed plans to replace the big Escalade SUV, with that model likely to reach market late in 2014.

A number of other, all-new products are under development, Caddy officials have hinted.  A compact crossover is among those models analysts anticipate, with a convertible also under consideration.  There has been some ongoing debate within GM about whether to take Cadillac even more up-market than the current XTS and a final decision appears yet to be made.

What also is uncertain is how many variants of the next-gen CTS will follow.  A high-performance V-Series model is all but a certainty but it remains to be seen whether Cadillac also will replace the striking but low-volume coupe and wagon models

Cadillac clearly hopes to gain momentum in the coming years as it plays out its aggressive product development strategy.

The maker suffered a disappointing 2% decline in 2012, sales slipping to 149,782 even as the overall U.S. market grew by 13%. The BMW brand, meanwhile, gained 13.5%, to 281,460, positioning it as the nation’s best-selling luxury marque. On the plus side, Caddy did gain momentum in January, largely driven by sales of the new ATS.

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