Cadillac, the General Motors luxury marque since 1908, has lost its way a few times in the last three decades. But recently, Cadillac has made a gallant attempt to become what it once was: the luxury car to own in the U.S.A. Now one of the best divisions within ailing General Motors, Cadillac is up there with its nemesis, Lexus, is better than BMW, and is way ahead of Mercedes Benz.

The CTS represents the best of what Cadillac is trying to do. That is make a sporty, luxurious automobile to challenge all comers. This car has a unique shape — slab-sided, solid-looking — that has been described by female acquaintances as “masculine” and “boxy.” Cadillac, however, is shooting for young well-to-do men, and it may have hit its target.

The interior is luxurious and inviting; leather and wood abound, creating a nice place to spend time.

The 2006 Cadillac CTS-V

Three engines are available: a 210 hp, 2.8 liter, V-6; a 255 hp, 3.6 liter, V-6; and for the CTS-V, a monstrous 400 hp V-8 that can propel this chunk of metal to over 160 mph. The V-6 is a 24-valve DOHC engine, and the V-8 is an old-time 16-valve OHV engine.

The test car was equipped with the 255 hp, V-6, which provided good, but not neck-snapping acceleration. A six-speed manual transmission is standard on all models, and a smooth five-speed automatic is optional for $1,200.

Prices range from $29,000 for the 2.8-liter, V-6 model, to $50,675 for the 6.0-liter, V-8 CTS-V model. The $40,000 test car had the five-speed automatic, power-heated memory seats, automatic mirror with compass, theft deterrent system with remote entry, 16-inch machined wheels, premium Bose six-disc changer with eight speakers and noise cancellation, XM Navtronic system and sunroof.

The ride was firm and comfortable with crisp handling on the twisties. The handling should be no surprise, since the CTS suspension, steering and brakes were developed at Germany’s famous Nurburgring racetrack, where BMW tests its cars. A $1,875 Sport Package improves the handling to near BMW standards.

EPA estimated fuel economy for the V-6 is 18 mpg city and 27 mpg highway. The fairly decent warranty is 48 months and 50,000 miles for the entire car. A longer powertrain warranty would be nice. This is a fine car from Cadillac, it seriously challenges entry level sport/luxury cars from Japan and Germany: The BMW 3-series, Audi 4, Lexus ES300, Infiniti G35 and Mercedes-Benz C-series.

The non-intuitive navigation system in the CTS is frustratingly difficult to set. Trying to get it off the last destination address on to a new one was so frustrating, it had to be shut down until this tester cooled off.

XM satellite radio is installed, giving a wide range of listening options, and the fee is covered for the first month. Overall the sound system was excellent with a six-disc changer, AM/FM and XM stations. Steering wheel mounted controls were intuitive and easy to use.

The instrument panel is clear and easy to read, and the leather seats were very comfortable. There’s plenty of room in this car, both front and back. Standard safety equipment includes front, side and side curtain airbags.

The CTS-V was not tested, but one can imagine what a 400 hp Corvette engine would do for this car. It is surely in the league of the baddest and fastest luxury cars in the world.

The CTS has a huge trunk, useful for airport journeys with a proliferation of bags and monster suitcases.

The car tested last month for Road Test was the BMW 3-series. This is one of the target vehicles for the Cadillac CTS. A comparison between the two was unavoidable. Both cars had stickers of $40,000. The BMW is a better handling car on the country roads, has more unique luxury features than the CTS and was quicker off the mark. The CTS feels secure on the highway, but a little shorter on passing power, and fast lane changes are not as tight as in the BMW. The interior of the CTS is more inviting and it is equally smooth and quiet on the highway.

This car has achieved a record MSN Autos consumer rating of 9.8 points out of 10. Very few cars achieve that level of consumer satisfaction.

General Motors now appears to be on the right track with many of its new cars, and the Cadillac division is one of its better performing marques. The question is: Are these better cars too late to save GM? This tester hopes not.

Motoring since 1952, Austin Lynas has owned 55 cars and at one time raced mini-sedans in England. An aerospace engineer, he was instrumental in developing the anti-skid systems used in British military aircraft that preceded today’s ABS systems. Lynas can be reached by e-mail at austin@sandiegometro.com.