Reports say GM internal sources have confirmed production for the new model and say it will use some of the technology from the Volt to help keep development costs down. The car is also said to be based on a since scrapped project which started in 2008, based on a Buick vehicle.
A Cadillac hybrid SUV would provide the market with a rival to Toyota's luxury off-road hybrid Lexus RX vehicles, although the Cadillac version will have the upper hand since it will be a plug-in hybrid using range-extending technology. GM does see Toyota as its main competitor in terms of sales though.
If the project does go ahead, it will be the first range-extending, plug-in hybrid luxury SUV on the market. Speculators say it certainly could take some of the Prius sales away from Toyota in the future.
Since the plans haven't officially been made public, a release date is yet to be estimated. We'll keep you updated though.