Cadillac's Standout CTS

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Pull alongside, and you'll notice how the fenders flare out. Immediately behind are new air extractors that, according to Cadillac senior engineer Randall Schway, "are 90 percent visual, but 10 percent functional." The sedan's "character line" has been enhanced. The look is still angular, but less squared.

The rear of the car is far better integrated than the original. The taillights are striking but not garish, and the license plate holder—downright cheesy in its original, gray plastic—is now carefully incorporated into the overall look.

Yet for all the exterior changes, you need to slip inside to discover the real improvement. With the '01 CTS, "We managed to take a very expensive interior and make it look cheap," laments GM's Bob Lutz. Not this time. Caddy, as we suggested, is giving Audi a run for the money.

Gone are the cheap plastic panels and switches that even Wal-Mart would have rejected. In their place are elegantly outfitted switches, panels, and accents blending wood, chrome, brushed aluminum, and the sort of high-line plastics you'd expect from a Bang & Olufson.

Speaking of whitch, Cadillac has come up with a very sweet, high-line infotainment package that blends AM and FM, XM satellite radio and MP3 and iPod inputs. I'd have tested the latter but my own iPhone hadn't gotten the latest software update, which would have allowed the Caddy system to operate it from the radio controls. Even with Bluetooth hands-free cellphone and navigation—which displays on a pop-up LCD screen that tucks away from turned off—the automaker has found a way to avoid button-and-knob proliferation, but without resorting to anything akin to the dreadful BMW iDrive system.

One minor complaint: the instrument panel wraps around the driver's legs at an uncomfortable angle, quite literally. The hard plastic edge caught our knee—a complaint voiced by several media colleagues—and could use a fair bit more padding.

BMW-Worthy?

That said, there is a vast amount of room available in the CTS, front and back, which is really sized somewhere between the BMW 3- and 5-Series models, though at a starting sticker of $32,990, it's priced closer to the former car. (To get into the DI V-6 and automatic, you'll nudge past $35,000, and a well-equipped version of the Cadillac sedan can push into mid-$40,000 territory.)

That's good value, though there is the generally higher BMW resale value to consider, never mind the intangible extra that so many folks are willing to pay for the German marque's products.

Of course, there are other competitors to consider, including Lexus. The CTS isn't quite as quiet as the Japanese maker's tomb-like offerings, but Caddy has done a credible job of isolating all but the harshest road and wind noises with careful engineering and the use of new sound-masking materials.

Looking over our roadside notes, we found a few complaints from two days of driving. We're not sure why Cadillac opted not to go with steering wheel-mounted paddle shifters for the automatic's manual mode. And we're frustrated with the excuse offered by engineers who said the placement of the roof-mounted airbags made it impossible to offer grab handles in a performance-oriented car like the CTS.

Then again, the sedan does have an admirable list of safety features, including six airbags, anti-lock brakes with Brake Assist, and stability control.

For those whose current concern is mileage, the sedan does reasonably well, achieving 17 mpg city and 23 highway with the VVT V-6, and 16/23 mpg with the more powerful DI. But there's no question the CTS suffered from the extra heft it has when compared to competing imports.

When all's considered, though, Cadillac deserves high praise for the '08 remake of its mid-size luxury sedan. The original CTS showed that after years of tunnel vision, Caddy finally started seeing the world as it was, a tough and demanding place where only the best were taken seriously. The new car is likely to taken even more seriously than before. The new CTS is still not a world-beater, but it is definitely a contender, and it deserves a lot of serious attention.

2008 Cadillac CTS

Base price: $32,990 (3.6-liter VVT engine); $35,290 (direct-injection V-6)

Engine: 3.6-liter V-6, 263 hp/253 lb-ft; direct-injection 3.6-liter V-6, 304 hp/273 lb-ft

Transmission: Six-speed automatic or manual, rear- or all-wheel drive

Length x width x height: 191.6 x 72.5 x 58.0 in

Wheelbase: 113.4 in

Curb weight: 3568 lb

Fuel economy (EPA city/hwy): 18/26 mpg (RWD auto); 17/26 mpg (RWD, direct injection)

Major standard features: Power windows/locks/mirrors; AM/FM/CD/MP3 player; steering wheel-mounted audio controls; dual-zone climate control; power seats; remote keyless entry; power tilt/telescope steering wheel; alloy wheels; indirect LED interior lighting

Safety features: Dual front, side, and curtain airbags; anti-lock brakes, traction and stability control, tire pressure monitors; active head restraints

Warranty: Four years/50,000 miles

Provided by TheCarConnection.com—The Web's Automotive Authority