The XT5 is an incredibly important car for Cadillac's future

Cadillac unveiled its new XT5 crossover this week. In an SUV-driven market, the XT5 will be crucial to the company's sustained growth. It will also give Cadillac a new weapon to compete in one of the most hotly contested segments in the market.

The crossover SUV market has been driving auto sales in the US to new heights. If the total number of new cars and trucks sold here in 2015 hit 18 million, it will be the highest yearly total ever. And a big chunk of that number will the SUVs.

Luxury crossovers are particular appealing to car makers because their profit margins can exceed those of cars. For Cadillac, which is in the middle of big rebranding effort involving a relocation of some operations to New York City, the XT5 is a critical vehicle. The GM division needs to maintain the sales momentum its has achieved with vehicles like the outgoing SRX.

"The all-new XT5 not only enters the most popular segment in the worldwide luxury auto market, it is the first of four new crossovers from Cadillac," Cadillac president Johan de Nysschen said in a statement.

"It's pivotal to our ongoing growth, which is why we've developed XT5 from the inside out to provide customers more space, more technology, more luxury and more efficiency."

Cadillac debuted the production XT5 at a fashion show in Dubai. The car will make its North American debut at the LA Auto Show later this month.