General Motors Corp. will build a two-seat Cadillac roadster called the XLR starting in the 2003 model year as the largest automakers luxury division tries to stem losses in market share to overseas rivals.

The new rear-wheel-drive car will have a 4.6-liter Northstar engine with a five-speed automatic transmission General Motors spokeswoman Cindy Kamerad said. The automaker announced the XLR at an annual industry gathering in Traverse City Michigan this month.

Cadillac was displaced in 1998 as the top-selling luxury brand falling to sixth place with Toyota Motor Corp.s Lexus now ranked first according to Autodata Corp. The roadster will use an automatic retractable hardtop from Car Top Systems GmbH General Motors said.

The roadster will be built at General Motors assembly plant in Bowling Green Kentucky starting late next year. The automaker builds Corvette sports cars at the factory.