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I'd argue a flagship sedan along the lines of whatever a proposed CT8 would be does more for the brand's image than anything else. It's not going to light the sales charts on fire but it will draw more attention to Cadillac and help reestablish its position in the luxury market.
It goes along the same lines of what's happening right now. Up until the 3rd gen, CTS was always a tweener, value proposition car. You get a larger car than a 3-series or C-class for less money than a 5-series or E-class. That didn't help its perception in the market though, and it made Cadillac look like a "bargain" luxury brand. Now CTS ATPs are at record levels, but sales have suffered as a result (in addition to the downturn in the luxury sedan market).
Further compounding the problem is from graphics leaked from Cadillac presentations, CT6 is actually positioned as a midsize luxury car in their proposed future lineup. There was supposed to be two sedans below it (a subcompact and compact) and one above it with other variants dispersed throughout (like a coupe, convertible, and two V-series models). CT6's lower than expected pricing structure seems to allude to that as well.
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2023 GMC Canyon Elevation
2023 Ford Expedition SSV (State-Issued)
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