Bloomberg reports that GM is currently evaluating the future of replacement models for the Cadillac STS and DTS sedans. It suggests that a single model could now replace both cars, or Cadillac could drop out of the large luxury barge segment altogether. But why would Cadillac drop out of the market it has come to symbolize?

Fuel costs, the recession and most importantly: slow sales. Having lost $69.8 billion since 2004, General Motors is now looking to sell customers the vehicles they want, dropping models that don't sell. The company has also discovered that, while people still want Cadillacs, they want the fuel-efficient, nice-to-drive CTS over the conspicuous consumption of its larger stablemates. Cadillac will now concentrate on CTS spinoffs like the 2010 Cadillac CTC and 2010 Cadillac CTS Sport Wagon, as well as new, smaller SUVs.

DTS production is scheduled to continue through 2010 at GM's Hamtramck, Michigan facility, at which point it will switch over to the Chevy Volt. It's not clear when the current STS would cease production. [Bloomberg via Autoblog]