BMW'S WEB SITE COMPARES

the praised and prized 3-Series sedans with several competitors, but not with the Cadillac CTS. BMW should take a closer look. The second-generation CTS stands head and fenders above the first version. It's a worthy competitor for the iconic 3-Series and other near-luxury cars priced between $30,000 and $40,000. Indeed, the new CTS offers the size and power of BMW's 528i for the price of a 3-Series.

The new CTS adds to the evidence that General Motors is finally getting its act together, at least on products if not profits. The Buick Enclave, GMC Acadia and Saturn Outlook crossover vehicles are selling well. The Pontiac G6 convertible, which offers a retractable hardtop for around $30,000, is good-looking and fun to drive. And the company's new labor contract wipes away billions of dollars of retiree health care and pension obligations from its balance sheet, allowing GM to focus on cars and trucks.

The first-generation CTS, launched in 2003, offered decent driving dynamics but had a tacky plastic interior that shouted "cheap" to anyone who climbed inside. All-wheel drive wasn't available as an alternative to standard rear-wheel drive. But the 2008's interior is inviting and comfortable, with an attractive instrument panel and new seats that proved supportive and relaxing on a recent seven-hour drive from New York to the mountains of West Virginia. The new version is 2 inches wider than the old CTS, giving it more room and a more attractive exterior stance. The base engine, a 3.6-liter, 263-horsepower V-6, handled the hills with ease.

The base price, including destination charge, is $32,990 with the standard six-speed manual transmission. That's in line with BMW's 328i sedan ($33,175), though it is $1,000 more than the new Mercedes-Benz C300 sport sedan ($31,975). But both the Bimmer and the Benz are smaller than the new CTS about 10 inches shorter overall, with a wheelbase 5 inches shorter, which makes for less leg room. And the CTS's base engine provides about 30 more horsepower.

2008 Cadillac CTS Base Price: $32,990 (including destination charge) MPG: 18 city, 26 highway Standard Features: 3.6-liter, 263-hp V-6; six-speed manual transmission; 17-inch aluminum wheels; cornering lights; eight-speaker Bose sound system. Runs on regular gas.

The CTS's optional 306-horsepower V-6 has a base price of $35,290. The BMW 335i offers about the same horsepower but is priced at $39,675, over $4,000 higher. The more compelling comparison is between the base CTS and the base BMW 528i. The key exterior and interior dimensions length, wheelbase, front and rear head room, front and rear leg room are almost identical, though the base 528i has a 230-horsepower engine, versus the CTS's 263. And the 528i's base price is $45,075, $12,085 more than the CTS.

The new CTS weighs 3,861 pounds, almost 400 pounds more than the similar-size 528i, and feels slightly less nimble than the BMW. Cadillac says the rear-wheel-drive model with a manual transmission scoots from zero to 60 in 6.3 seconds, while BMW times the 528i at 6.5 seconds.

Want more zoom? Coming later this year is the CTS-V, which will top 500 horsepower and race from zero to 60 in under four seconds. The likely price: between $55,000 and $60,000. But for those who harbor qualms about the carbon footprint, the base-model CTS provides cleaner performance and lots of value for the money.