Cadillac just entered a brand-new market by unveiling the XT4 crossover at the 2018 New York Auto Show. An all-new nameplate, the XT4 is a compact luxury crossover that slots under the already familiar XT5. The XT4 is also Cadillac's smallest SUV yet. The crossover will compete against some of the industry's best selling premium SUVs, like the Mercedes-Benz GLC, BMW X3, and the Audi Q5.

Not surprisingly, the XT4 is heavily based on the XT5 design-wise. It has similar swept-back headlamps and big trapezoidal grille with honeycomb mesh and a secondary grille in the lower bumper. However, the XT4 stands out by means of side intakes place higher in the fascia and vertical LED strips that are shorter than the XT5's. The engine hood also sits lower, giving the crossover a sportier stance.

We can see more differences onto the sides, where the XT4 has a more mundane beltline and lacks the XT5's chrome trim, as well as a quarter window. But while the profile is simpler, it has a more dynamic vibe that matches that of the competition. The rear end is a mix of XT5 and new design features. While the tailgate and the bumper remind me of the larger SUV, the taillights are completely new and feature a more intricate design. Just like the Escalade, the LED light units are mounted on the D-pillars, but on this model, they also extend into the tailgate a little bit. The chrome trim on the XT5 is also missing here, a sign that Cadillac wants to keep the XT4 away from the usual bling.

The XT4 also debuts the company's new "Y" trim strategy, which adds distinctive styling cues for each model, this case the Luxury, Premium Luxury, and Sport. Specifically, the XT4 Sport gets a gloss black mesh grille inspired by Cadillac’s high-performance V-Series models, gloss black window moldings, and unique alloy wheel choices. Luxury and Premium Luxury models feature grilles with bright metallic accents, satin aluminum window trim, and satin chrome-accented door handles.

The cabin has just enough new features to stand out from the XT5. At the same time, it looks pretty luxurious for a compact SUV. The multi-tiered dashboard is a novelty for a Cadillac, while the massive screen in the center stack provides access to many infotainment features. The lower center stack is a new concept too, with all the controls placed horizontally. The crossover is equipped with Cadillac's latest tech, including Near-Field Communication, wireless charging, Surround Vision, and Rear Camera Mirror. The brand claims that the XT4 will offer segment-leading rear-seat roominess, with 39.5 inches of legroom. Trunk space is rated at 48.9 cubic feet with the rear seat folded flat.

The XT4 draws its juice from an all-new, 2.0-liter four-cylinder engine. The turbocharged unit features an industry-first "tripower" system that optimizes performance and efficiency by having three distinct operating modes, including high and low valve lift and cylinder deactivation. The unit is rated at 237 horsepower and 258 pound-feet of torque, on par with the competition. The SUV is available with a twin-clutch and an Active Sport Suspension featuring Continuous Damping Control and new electro-hydraulic braking assist.

Pricing starts at $35,790, which makes the XT4 significantly more affordable than the BMW X3 and Mercedes-Benz GLC, which cost in excess of $40,000.

References

Read our full speculative review on the 2019 Cadillac XT4.

Read more news on the 2017 Cadillac XT5.

Read more Cadillac news.

Read more New York Auto Show news.