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Hybrids losing appeal in U.S.

(SFGATE) — (Bloomberg) — It’s a sign of the times when Cadillac is staking its comeback on a compact car that boasts fuel economy approaching 40 mpg.

Cadillac’s ATS sedan is one example of how carmakers at the Detroit auto show are putting new emphasis on small, powerful models with more fuel-efficient engines as sport-utility vehicles and even hybrids take a back seat.

General Motors Co.’s luxury brand brags that the ATS will run on a turbo-charged four-cylinder engine that kicks out 270 horsepower while still offering robust fuel economy.

At the same time, Ford Motor Co. said it’s dropping plans for a hybrid version of its popular Escape SUV.