Cadillac needs a diesel and the GM premium brand knows it.

If the brand is going to be competitive with the German premium marques, Audi, BMW and Mercedes-Benz, the automaker is going to need world-class diesel engines.

"We absolutely mean it when we say we aim to compete with the best of the best without compromises. And if that means making the right powertrain choices, then those are the choices we will have to make," says Don Butler, Cadillac's marketing VP. The Automotive News reports states that Cadillac is considering introducing a diesel engine in the United States market.

Cadillac is a resurgent brand with fresh products such as the recently introduced 2013 XTS, which debuted at the Los Angeles motor show. The car comes with a 3.6 liter V6 but, of course, no diesel option.

Cadillac will have to makes sure any diesel units it does develop are competitive. GM also has the option, though, of sourcing diesel engines and technology from its European unit Opel.

But sourcing engines from Europe could raise issues of cost for the brand and importing the technology for production in the United States would take a lot of time and effort.

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