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GM's plan to outmaneuver Toyota

How General Motors will use its eight U.S. brands to to attack and outflank competitors and take back market share.

Job: Take on Mercedes-Benz and BMW
Cadillac CTS
Cadillac
Job: Take on Mercedes-Benz and BMW
Of all GM's U.S. divisions right now, Cadillac is probably the brightest star. The Cadillac crest had gone from the very top in the 1950s and '60s - a name once synonymous with excellence - to a tattered cliche by the 1980s, a problem-prone imitation of its former self.

Today, Cadillac is maybe a few steps away from becoming what it really should be, a genuine American alternative to more expensive German luxury cars. But the key word there is "alternative." No one will confuse a modern Cadillac with a Mercedes-Benz. Cadillacs are still showy, still sharp, still glitzy. But underneath, there's real substance now.

Interior design and quality, while much better, have been weak points, and ride and handling, while very good, haven't been quite up to German luxury standards.

But someone might still buy a Cadillac instead of a Mercedes-Benz because, on balance, they prefer Cadillac's style. That's fine, but it would be better if people bought a Caddy instead of a Mercedes because the Cadillac was just a better car.

The latest Cadillac addition, the redesigned 2008 Cadillac CTS, might just do it. Its strong engine, supple ride and sharp handling leave little or nothing to competitors. Plus it offeres an eye-catching expressive design, inside and out. The CTS is just a bit larger and roomier than a BMW 3-series or Mercedes-Benz C-class for the same money.

Cadillac now just needs to fill out its line-up. Recent reports indicate that the enormous front-wheel drive DTS will go away to be replaced by a slightly smaller model. For those who need cargo space, sport-wagon and crossover ideas are said to be under discussion within GM.

Last updated December 31 2007: 7:45 AM ET

Rebuilding

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