Apparently so, though apparently only for Europe.
But – wait – that makes no sense. They sell more Bentleys in Europe than they do Cadillacs, despite the fact that the current STS’s dimensions were specifically scaled to European tax laws.
But here it is, ostensibly a STS diesel testing in Europe. Rumor has it with an Opel powerplant, though exactly which one isn’t clear. Though there is speculation that it could be the 1.9 liter unit from the BLS, that’s an absurd number of cubes to power the STS. That’s 110 cubic inches. Better guess is an Opel V-6 diesel of 3.0 liters and 184 hp. That’s not far off the scale of the base STS engine in the States, albeit one that fires on gasoline.
But what’s in this for Cadillac?
The STS has been a sales dog since day one. In Europe, its sales are infinitesimal. In the States, they only sell when given away, and sell poorly even then. Plus, GM has put all of its Cadillac eggs in the CTS basket. Preliminary auto press reviews are raves, GM has budgeted $50 million to promote it and settled the strike, so they’re going to be building it as fast as they can. No rational human being would take an STS over a new CTS, absent a discount equivalent to the price of, perhaps, two years depreciation on the STS. 
So why bother putting a diesel in a car that doesn’t sell anywhere?
Maybe it’s a mule. Maybe they’re figuring on a diesel CTS, though that seem antithetical to the image the division is trying to convey for the new car.
Maybe someone was just curious, though that still leaves the question of “why?”
Maybe GM is hedging their bets – if Mercedes can put a diesel in an S Class, why can’t Cadillac?
Because they’re no good at it, that’s why. They’re still trying to live down the reputation from the last diesel Cadillacs, back in the ‘80s. Those were based on gasoline engines and set records for warranty claims. The poor soul that bought them new discovered that they couldn’t give them away used. Not since the copper cooled Chevrolet had GM made such a colossal engineering blunder. But with the copper-cooled Chevy, the company at least had the courage to buy back every one they sold and dump them in Lake Michgan (all but one, which is in the Henry Ford Museum in Dearborn, no causing Henry’s ghost a bit of a chuckle at GM’s expense).
A diesel STS for Europe.
They ought to be able to sell at least twenty of them.

Source: WorldCarFans

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  (666) posted on 05.13.2010

You should check out the all new Duramax 4.5-liter turbo diesel V8 in the Cadillac CTS.

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