In Europe later this year Cadillac plans to incoporate the VM Motori designed 2.9L Turbo diesel engine  into the Cadillac CTS, CTS Coupe, and CTS Sport Wagon for European consumption.  It looks like a nice powerplant, and at 250hp output certainly will not be a slouch.

Here in the US we have a different market.  Here, diesel fuel is quite a bit more expensive than premium unleaded gas.   There is no tax benefit to use of diesel.   It has seemed unlikely that GM would bring the 2.9L Turbo diesel here to the US.

Motor Trend today brought us a new Rumor however — why not throw the 4.5L Duramax Diesel engine into the CTS, put the CTS-V hood on so that it would fit, and sell that in the US?  The new 4.5L V-8 diesel is expected to deliver more than 310 horsepower (231 kW) and 520 lb-ft of torque (705 Nm), while delivering a 25-percent engine fuel efficiency improvement versus comparable gasoline engines.  Note that is MORE hp than the direct injected 3.6L optional engine in the current CTS.

4.5L Duramaxx Turbo Diesel V8

The new dual-overhead cam, four-valve V-8 diesel engine boasts a number of innovative design approaches that have enabled its compact size and mass, including integral aluminum cylinder head exhaust manifolds, integral cam cover intake manifolds and a narrow V-angle block. The new V-8’s compact size enables it to fit within the same space of a small-block V-8 gasoline engine and offers GM the flexibility to introduce it in a wide variety of vehicles to meet market demand.

“This premium diesel engine is expected to deliver the power, torque and refinement our customers expect,” said Tom Stephens, executive vice president, GM Global Powertrain and Global Quality.  Of course he meant truck customers, but I think this is a VERY viable engine for the CTS.

The new V-8 diesel will be GM’s first engine to use a selective catalytic reduction (SCR) NO_x after-treatment system with a diesel particulate filter to help achieve Tier 2 Bin 5 and LEV 2 emissions, making it compliant in all 50 states. SCR was chosen for its proven NO_x reduction capability and durability, and high efficiency while operating in optimal diesel combustion modes, making it a very attractive system to achieve high fuel economy.

The environmental benefits of the new engine include a 13-percent reduction in CO₂ emissions and at least a 90-percent reduction in particulates and NO_x compared to many diesel vehicles today.

Would the US Cadillac CTS customers be willing to get improved acceleration and performance at the expense of having to fill up with Diesel?  I would.