GM acted quickly to deny a rumor about Cadillac planning to offer a compact luxury sedan to compete against the Mercedes CLA based on the front-wheel drive underpinnings of the Chevy Cruze.

According to Jalopnik and other websites, “a GM spokesperson reached out to strongly deny that the company was planning on anything like a Cruze-derived hatchback for Cadillac.”

If you missed the rumor-report(s) from Wednesday, we’ll remind you GM Inside News citing multiple informants said that the Cadillac compact could get a $6,000 – $9,000 premium over the Cruze, while on the mechanical front, it would be powered by a 1.5-liter turbo engine for the entry-level models, and a 2.0-liter turbo for the higher end trims, with both motors paired with an 8-speed automatic.

This is not the first time we’ve heard about Cadillac mulling a smaller model than the ATS, but all previous reports mentioned the use of GM’s Alpha rear-wheel drive architecture found in the ATS and the CTS, as well as the latest Chevy Camaro.

Chevrolet Cruze Sedan pictured

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