Cadillac ATS and XTS sedans coming in 2012

Two new Cadillac sedans will join the brand's lineup in 2012, the full-size XTS and the smaller ATS.

The products were confirmed on Thursday by General Motors North America boss Mark Reuss at an auto-industry conference in Traverse City, Mich.

The XTS is based on the XTS Platinum concept introduced at the 2010 North American International Auto Show in Detroit. It will launch in spring 2012. All-wheel drive will be an option on the XTS, while base versions will send power to the front wheels.

GM is investing $117 million to build the XTS at its Oshawa Car Assembly Plant in Ontario.

The ATS, which the company released a sketch of on Thursday, will be smaller than the CTS. It will battle the BMW 3-series, the Mercedes-Benz C-class and the Audi A4. Rear-drive and all-wheel-drive setups will be offered. The ATS should arrive in dealerships during the summer of 2012. It will be assembled at the company's plant in Lansing, Mich., which recently received a $190 million investment.

The next generation of the Cadillac CTS is expected to be larger, setting it up to compete against cars such as the BMW 5-series and the Mercedes-Benz E-class.

"The car we code-named ATS is being developed to be a driver's car on an all-new Cadillac-specific RWD-AWD architecture," Reuss said. "We have extensively and exhaustively studied the competitive segment, and we have benchmarked the best. And when this car comes out, that will be readily apparent."

By Jake Lingeman