Cadillac will launch a new large saloon to rival the Mercedes-Benz S Class and BMW 7 Series. The car, expected to be built off a new rear-wheel drive platform, is due towards the end of next year.

The new model was confirmed by Mark Reuss, head of global product development for General Motors, speaking to reporters at an event in Detroit honouring GM students.

He said that it was important for Cadillac to be in the top car segment if it was to be taken seriously as a luxury carmaker.

"This is a car that Cadillac needs that will define this brand in terms of innovation and excellence," he told the Detroit News.

Confirmation of the new Cadillac comes a year after the company revealed its Elmiraj concept vehicles.

The new model will sit above the XTS saloon. Reuss also confirmed that Cadillac is exploring having a smaller model that would be below its current entry-level ATS compact saloon.

Cadillac sales in the US in the first seven months of the year have slid 2%.