The Seville, introduced in May 1975 as an early 1976 model, was Cadillac's answer to the rising popularity of European luxury imports as Mercedes-Benz and BMW. GM planners were becoming concerned that the division's once-vaunted image as the “standard of the world" was fading, especially among the younger generation of car buyers.
Over time, European luxury cars had become quite luxurious and even more expensive than the much larger Cadillacs. As the market share of these imports continued to climb, it became obvious that the traditional American automotive paradigm of "bigger equals better" had begun to falter. The Seville became the smallest and most expensive model in the lineup, turning Cadillac's traditional marketing and pricing strategy upside down.
Source: Wikipedia
