Cadillac pretty much hit rock bottom in 1982, with the Cimarron. It was a rebadged Chevy Cavalier, and about as far from what a Cadillac should be as you could get, considering that half a century previous, the brand called itself "The Standard of the World" and built cars powered by 16-cylinder engines.

Verdict Highs: Distinctive looks, low prices Lows: Rear-drive traction limitations, interior styling (early models)

A turnaround was needed, and badly, but it wouldn't come until 2002, when General Motors' most prestigious marque wheeled out the CTS: it was the first Cadillac sedan to sport the brand's edgy new styling, and it spearheaded Caddy's return to respectability, being the first of several subsequent models designed to keep up with Germany's best.

The first CTSs used a 3.2-litre V6 making 220 horsepower and 218 lb-ft of torque. Cadillac enthusiasts - the fact that there are some of these and that they know how to use the Internet is a testament to the CTS' success in appealing to a more, uh, lively demographic - are of two minds about this engine. Those into modifying their cars feel the 3.2-litre is a poor choice, as there is little aftermarket support for it. Other drivers who prefer to leave the engineering to the guys at General Motors say the 3.2-litre is a fine motor, even if it might be a bit underpowered.

2004 Cadillac CTS. Click image to enlarge

Speed freaks got their wish in 2004, when Cadillac added two new motors to the CTS line-up. One was the 3.6-litre V6 that's being used in a multitude of GM products these days; in CTS form, it makes 255 horsepower and 252 lb-ft. The real powerhouse was the 5.7-litre V8 bolted into the CTS-V, the first member of Cadillac's then-new V-series performance line. This Corvette-based engine grew to 6.0 litres in displacement in 2006, but produced the same 400 horsepower and 395 lb-ft of torque as the smaller motor.

In 2005, the 3.2-litre was replaced by a 210-horsepower, 2.8-litre V6 based on the 3.6-litre.

Transmission choices were a five-speed manual or five-speed automatic in 2003 models; in 2004, a five-speed manual came with the 3.2-litre motor, while the five-speed auto was standard spec for 3.6-litre models, and the CTS-V got a six-speed gearbox. For the 2005 through 2007 model years, all cars got a six-speed manual as the base transmission, and a five-speed automatic was an option on all but the CTS-V.

Fuel consumption with the original 3.2-litre engine is rated at 12.9 L/100 km (city) and 8.4 L/100 km (highway) with the automatic transmission, according to Natural Resources Canada. The 3.6-litre (automatic-only in its first year) got ratings of 13.4 L/100 km (city) and 7.8 L/100 km (highway); manual transmission versions of this car were a little thirstier.

2004 Cadillac CTS. Click image to enlarge

Cars with the 2.8-litre engine were only marginally more efficient than 3.6-litre models, so choosing the smaller motor probably isn't worth it unless the 2.8-litre car is a great deal. The CTS-V's ratings of 15.3 L/100 km (city) and 9.2 L/100 km (highway) look pretty good on paper, but driving the car gently enough to achieve those numbers would be challenging, to say the least.

First-generation CTS reliability appears to pretty solid so far, though there are a few known issues to look out for. One of the higher-profile problems affecting these cars is a fragile differential that's prone to failure. Signs of a differential that's on its way out include a moaning sound from the rear end while cruising or decelerating at speed and/or a chattering sound while reversing, so watch for these symptoms while test driving.

There's a minor issue with 2003 models where an analog clock in the gauge cluster won't keep time with a digital clock in the dash. The fix is a relatively easy one, and involves swapping the cluster for one from a 2004 or 2005 car; 2004 and newer cars didn't have the analog clock. An FAQ at CadillacFAQ.com suggests that many 2003 gauge clusters might have been replaced under warranty.

The steering sensor, which is apparently tied into the Stabilitrak traction and stability control system used in the CTS, is known to go bad, and it looks like crankshaft position sensors might be a weak point, too.

2004 Cadillac CTS. Click image to enlarge

Many owners report having to replace items like batteries, water pumps and air conditioning compressors at relatively low mileage, but I couldn't find a pattern to suggest these are common issues. That said, some posters at CTS-related forums suggest that it might be best to avoid 2003 models due to reliability-related teething problems. Consumer Reports suggests this might be right; that publication gives the CTS an "average" used car rating overall.

These threads CadillacForums.com and CaddyEdge.com detail a few common CTS issues. Also, check the aforementioned FAQ at CadillacFAQ.com which looks like a good resource.

Crash safety is strong: the National Highway Traffic Safety Administration (NHTSA) gave the CTS four stars for driver and passenger protection in frontal impacts, and four and five stars respectively for front and rear seat occupant protection in side impacts. The Insurance Institute for Highway Safety (IIHS) gave early 2003 models an "acceptable" rating, but this was upgraded to "good" for cars built after September 2002; Cadillac upgraded airbag sensors in these early cars to correct a problem in which the airbags were deploying too late to provide optimal crash protection.

Used CTS values are very attractive, thanks to aggressive depreciation; according to Canadian Red Book, you should be able to find a 2004 non-CTS-V model for about half of its MSRP (which ranged from $39,200 to $54,035 that year). Go back to 2003, and Red Book values for all CTS models are worth less than $20,000.

2004 Cadillac CTS. Click image to enlarge

For less than $30,000, though, you should be able to find a 2005 3.6-litre car with at least a bit of the factory warranty left. CTS Red Book values range from $34,100 for a 2007 3.6-litre model (the CTS-V is a relative bargain at $55,300, compared to its $70,000-plus MSRP), while a 2003 base model is worth just over $18,000.

The bottom line is that the CTS, when new, was one of the best cars to come out of a General Motors division in some time. While the second-generation version (which goes on sale later this year as a 2008 model) will no doubt be even better, these early cars have held up pretty well, and are a strong start to Cadillac's renaissance as a competitive premium brand.