This file photo the grille ornament of a 2011 Cadillac...

This file photo the grille ornament of a 2011 Cadillac Escalade 4WD Platinum Hybrid at the opening of the Pittsburgh International Auto Show, in Pittsburgh. (Feb. 10, 2011) Credit: AP

General Motors Co. will add two models to its Cadillac luxury brand lineup next year, a full-sized front-wheel-drive car and a smaller rear-wheel-drive performance car.

Mark Reuss, GM's North American president, made the announcements Thursday at an automotive industry conference in Northern Michigan.

The larger car, called the XTS, is aimed at traditional, older Cadillac buyers and those who want a front-wheel-drive luxury car, Reuss said. The XTS will be built at a factory in Oshawa, Ontario, which will get a $117 million investment that will keep or retain 400 jobs. The car is due in showrooms in the spring.

The second model, called the ATS, will be built at the Grand River plant in Lansing, Mich., with a $190 million investment that will save or create 600 jobs, he said. GM will begin building the car in the summer, the company said. The ATS will emphasize performance and handling and is aimed at younger buyers who would go for the BMW 3-Series or other German performance sedans, Reuss said.

Reuss also said Cadillac needs a big rear-wheel-drive car to compete with larger Mercedes and BMW models, but he gave no specifics on plans for a new model.

Cadillac sales fell 26 percent in July due in part to the brand's aging model lineup.

The factory investments are part of $2 billion GM is spending to create or retain 4,000 jobs in eight states.

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