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The new Cadillac CTS might've been born and bred in Detroit, but you can tell it has spent time on the Nurburgring Nordschleife during its development. This is an American car with a German chassis: not exactly like a Mercedes or a BMW, but taut, tied down, nicely balanced, and stable at high speeds. It's not just the best-handling Caddy in history, but probably the best-handling American sedan ever.

Two six-speed transmissions are available: GM's new 6L50 automatic and the Aisin Warner AY6 manual. The auto features a sport mode that adapts to your driving style and dynamic inputs such as brake and steering. The algorithms in the transmission computer needed fine tuning on the early production cars we drove-they tended to hang on too long in a lower gear-but Cadillac engineers say this'll be done before cars hit dealer showrooms. In manual shift mode, the transmission matches revs, race-car style, on downshifts. You have to reach for the shifter-back for down, forward for up-to change ratios, as there are no steering-wheel mounted shifter buttons-yet. Expect them on the 2009 models.

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First Drive: 2008 Cadillac CTS

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