Cadillac is rumored to be working on its own upscale version of the Chevy Volt, according to Autoblog. There's no word yet on whether this means the car will be a badge-engineered version, will just borrow the Volt's drivetrain, or be a completely new model. The rumors come right as Cadillac announced it is considering releasing a four-cylinder sedan in the U.S. again, indicating that the company is beginning to shed its image as a producer of large luxury cars and SUVs.

The report said that sources suggest a higher sticker price than the Volt's anticipated $40,000 entry fee, which would make sense—we can't have a Cadillac that costs less than a similar Chevy. At the same time, a move like this would give Cadillac a leg up over Lexus, assuming the Volt performs as anticipated, since Lexus seems committed to building performance hybrids that don't particularly do much better on fuel economy than their gas-powered counterparts.