Cadillac's Stellar CTS

by Thane Peterson

Editor's Rating:

The Good: Classy interior, excellent handling, available all-wheel drive

The Bad: German-style pricing, aging customer base

The Bottom Line: An entry-level Caddie with the credentials of a Bimmer

Reader Reviews

General Motors (GM) has done a brilliant job of redesigning its Cadillac CTS sedan. The 2008 CTS is gorgeous inside and out, has a more powerful engine than the previous CTS, comes packed with high-tech gear and handles like a dream. But can it really match the import rivals GM says it can, including the BMW 3-Series and 5-Series, Mercedes C-Class, Audi A4, Infiniti G35, and Toyota's (TM) Lexus GS 350?

The answer?surprisingly?is yes. In one of the most competitive segments of the car market, the 2008 CTS not only matches some of the best cars in the world but in some ways surpasses them. For instance, I prefer the CTS's interior to those of the BMW 335i and the new Mercedes C350 (BusinessWeek, 9/24/07). The optional Bose entertainment system is a marvel of great sound, advanced technology, and easy-to-use controls. In the "Black Raven" version of my test car, I even found the CTS as visually appealing as a BMW, a Mercedes, or a Lexus.

The new CTS is slightly bigger than most of its imported rivals?roughly the size of a BMW 5-Series sedan. It has the same 113-inch wheelbase but is taller, wider, and slightly longer than before. At 16 feet, it's more than a foot longer than the

href="http://www.businessweek.com/autos/content/oct2006/bw20061017_704775.htm">BMW 335i (BusinessWeek, 10/17/06), nine inches longer than a Mercedes C350, and nearly five inches longer than Nissan's (NSANY) Infiniti G35 Sport (BusinessWeek, 4/30/07).

The CTS also has more power under the hood than before, with two 3.6-liter V6's to choose from. The basic engine, carried over from the previous model, is rated at 263 horsepower. But the power plant of choice, in my mind, is the optional hyped-up, 304-horsepower version of the same engine with direct fuel injection.

One measure of how serious Cadillac is about challenging BMW for the hearts and minds of driving enthusiasts is that the CTS is available with either a six-speed automatic with a manual shifting function or a six-speed stick shift. The Lexus GS 350 only comes with an automatic, and Mercedes has dropped the stick shift on its new C-Class, even in Europe.

Unfortunately, along with German-style looks and handling comes German-style pricing. The '08 CTS starts at $32,990, or $35,290 with the more powerful engine. However, like a BMW, it has a long list of pricey options to choose from, so most buyers end up paying over $40,000. For instance, all-wheel drive costs an extra $3,200, or $1,900 with the more powerful engine; a performance package that includes summer-only, low-profile Michelin tires runs $2,430; and a panoramic sunroof adds $1,450.

I'd also consider going with the $8,165 Premium Luxury package. It includes a passel of upgrades, including leather upholstery, Sapelle wood inserts in the steering wheel, rain-sensitive wipers, and heated, ventilated front seats. But the big appeal to me is that it includes the above-mentioned entertainment system (more on that later).

The CTS is rated to get 18 mpg in the city and 26 on the highway, but I found it less fuel-efficient than some of its rivals, especially when equipped with all-wheel drive and the more powerful engine. I only got 18.5 mpg in a stretch of 223 miles of mainly highway driving, vs. 22.1 in a Mercedes C350 and 25.6 in a BMW 328i Coupe. However, the CTS uses inexpensive regular gasoline, while its rivals all require premium fuel.

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