American dream: Cadillac gives its German rivals a wake-up call.(Product/service evaluation)

BMW and Mercedes-Benz have long been considered by many to set the standard in the sport-sedan category. But this month a newly redesigned Cadillac outscored cars from both of the German automakers, earning high marks for agility, powertrain, and refinement.

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The 2008 Cadillac CTS beat out the BMW 328i and the redesigned Mercedes-Benz C300 in our upscale sport-sedan group. It also outscored the freshened Saab 9-3.

While the CTS vaults past most competitors, the Infiniti G35 and Acura TL still outscore it and lead this class in our Ratings.

Upscale sport sedans emphasize style and performance more than traditional luxury cars. They tend to have less interior room and ride more firmly, but they have better steering and nimbler handling, which makes them fun to drive.

While German cars have historically dominated this category, more recent offerings from Acura, Infiniti, and Lexus have proven their worth. Now the CTS gives them a run for their money.

The new CTS carries over the taut ride and agile handling of the previous model and is now more refined. There are more safety features and interior amenities in the new model. Fit and finish is greatly improved, and the interior is much more pleasant than in the outgoing car. Our tested CTS had the base 263-horsepower, 3.6-liter engine, which was the top offering in the previous model. Also offered is a stronger 304-hp, direct-injection version.