Cadillac’s second-generation CTS has garnered rave reviews and finally allowed the once-storied automaker to compete with the likes of BMW, Mercedes-Benz and Lexus. For 2011 a few detail changes continue the evolution of one of GM’s most competitive efforts in decades. Last year saw the introduction of the CTS Sport Wagon, a stylish family hauler. This year we get a new CTS Coupe model (discussed separately), as well as new options, a revised six-speed manual transmission and minor styling tweaks, like redesigned side louvers.

The 2011 CTS certainly cuts a dashing figure, all angles and creases. Its low, muscular stance accentuates the midsize model’s positioning as a sportier Caddy; no one will mistake the CTS for a Fleetwood Brougham. Jewel-like xenon headlamps, LED taillights and a mesh grille show that GM is finally getting the details right. While the design is unquestionably distinctive, the fat C-pillars impede rearward vision, especially in the wagon.

Moving to the interior, the sharpness of the design gets somewhat diluted by a sea of buttons and conflicting shapes. The sweep of the center console forces the HVAC vents to the side and focuses the eye on a single center screen, which displays both radio and climate control information, which is not the most ergonomic arrangement. Likewise the separation of driver and passenger climate controls makes for a cocoon-like appearance, but might prove tricky for newcomers to operate. While the overall design falls short of perfection, the execution is, for once, top notch. GM has long struggled with interior quality, but the razor-sharp detailing and expensive-looking materials of the 2011 CTS absolve many of the General’s past sins. Plastics are the equal of the foreign competition, and panel gaps are nearly perfect. The firmly bolstered leather seats and polished wood trim lend an upscale air, as does the newly available heated steering wheel. While not quite as spacious as some Lexus models, the CTS sedan gives plenty of room for four, and the Sport Wagon features a large, easily accessible cargo bay with 58 cubic feet of space. The wagon also offers an innovative cargo management system that allows parcels to be stored beneath the load floor. The interior is sufficiently isolated from road and wind noise, though Cadillac (like most everyone) still trails Lexus in this regard.

Underneath the 2011 CTS benefits from GM’s most advanced drivetrain technology. Base models are powered by a 3.0-liter V6 motor with variable valve timing that produces a healthy 270 hp. Yet this high-tech, high-revving mill makes only 223 lb-ft of torque, barely enough to endow the nearly two-ton Caddy with adequate acceleration. The base motor can be combined with either a six-speed manual transmission (refined for 2011 with a new clutch and smoother action) or a conventional automatic, also with six cogs. Despite being slightly underpowered, the base V6 goes about its business smoothly and makes pleasant noises. For 2011 all CTS trims are available with all-wheel drive. An innovative Borg Warner system can divert 100% of the engine’s torque to either end of the car, providing excellent traction. Stepping up to the CTS Performance trim level nets buyers a more powerful 3.6-liter V6 that makes 304 hp and, more important, 273 lb-ft of torque. This extra grunt pays enormous dividends in acceleration, and the larger six’s direct injection system provides excellent throttle response. Unfortunately, the bigger six comes only with the automatic gearbox, though it can still be optioned with the high-tech AWD system.

Given the brand’s reputation for building luxo-barges, handling is one area where you might not expect a Cadillac to excel. Yet the CTS had its suspension honed on Germany’s legendary Nurburgring racetrack, home territory for BMW engineers. While they haven’t quite managed to outdo the best of Europe, the folks at Cadillac did endow the CTS with some of the best handling ever seen in an American car. The four-wheel independent suspension, consisting of control arms up front and a multi-link setup out back, allows even base CTSs to be hustled around with a minimum of fuss. The speed-sensitive steering is accurate, and turn-in is crisp. Handling limits are high, and the car breaks away smoothly and predictably. Ultimately the CTS lacks the incredible precision and organic cornering ability of a BMW, but it’s certainly livelier than Mercedes of late.

For 2011 base CTS models start at just over $35,000 and are equipped with power accessories (including a power driver’s seat), dual-zone climate control and convincing Leatherette upholstery. The CTS Luxury trim (about three grand more) gets real leather seats along with Bluetooth and a 6-CD changer. A sportier CTS Performance trim nets buyers 18-inch alloy wheels along with foglamps, while the penultimate Premium trim includes standard navigation and the larger, 3.6-liter motor. AWD adds about three thousand to the bottom line of any six-cylinder CTS and should be considered essential for those who live in the snow belt.

It’s a testament to GM’s turnaround that 2011 finds Cadillac nipping at the heels of such established names as BMW and Lexus. The CTS is a stylish, well-engineered product that is competitively priced and supported by a strong warranty and an excellent dealer network. While the smallest details are slightly in arrears of the world leaders, it’s now obvious that GM has the drive and the talent to once again make Cadillac "The Standard of the World."