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Excuse a touch of chauvinism, but it's gratifying when the maligned U.S. automobile industry comes up with a car that can credibly compete with the best from abroad.

Such a machine is the 2008 Cadillac CTS, which is pitted against the likes of the BMW 3-Series, Lexus IS-Class, Infiniti G, Mercedes-Benz C-Class and Audi A4.

The leader in this group is BMW, which is regarded as the benchmark. It sells about twice as many 3-Series cars than any of the others do individually. Yet even against such a formidable opponent, the CTS acquits itself well.

Completely redesigned, although it continues with its distinctive and easily-recognized sharp-edged styling, the new CTS is slightly larger and heavier than those competitors. It's a mid-size car, where the others are classified as compacts.

That means more interior space, especially for rear-seat passengers, but the additional weight shaves off some performance.

Nevertheless, this is an American high-performance sedan that makes no apologies or excuses. An owner will not have any feelings of inferiority in brag sessions with friends who own imports.

Last year, the most powerful CTS engine was a 3.6-liter V6. This year, it is installed as the base engine, with 263 horsepower, mated to either a six-speed manual gearbox or a six-speed automatic with a manual-shift mode.

The up-level engine for 2008 is a new, 3.6-liter V6 with direct fuel injection that makes 304 horsepower -- the highest output six ever from GM. It's enough to propel the CTS to 60 miles an hour in about six seconds, despite its more than two-ton weight. And it runs on regular gasoline, unlike most of the competition, which rely on premium.

Both versions of the CTS are available with standard rear-wheel drive or optional all-wheel drive, as well as different suspension system tuning.

The base car comes with the FE 1 suspension system, with 17-inch alloy wheels and all-season tires. Even with the 263-horsepower engine, it provides a satisfying balance of performance, ride and handling. With the manual gearbox, it has a starting price of $32,245. The shifter gets a trifle clunky in the upper gears, but is positive in operation and has a nice tactile feel.

The next level is the FE 2 suspension, with 18-inch wheels, which is tauter and biased toward handling. It has slightly less ride comfort. Both the FE 1 and FE 2 suspension systems are available with both engines and rear- or all-wheel drive.

For all-out handling on the road or race track, Cadillac offers the stiff FE 3 suspension system, with 18-inch wheels, which is available only with rear-wheel drive. Given its performance orientation, the FE 3-car, with the more powerful engine and the six-speed automatic transmission, had a surprisingly compliant ride.

The automatic can be shifted manually. But the driver can also choose to ignore the shifter when it's in the manual slot and it will shift automatically but more aggressively than in the normal "drive" position.

The test car, with a base price of $35,290, had all-wheel drive with the mid-level suspension system, six-speed automatic transmission and the 304-horsepower engine. It had all the usual safety equipment for this class of car, including stability and traction control, antilock brakes, side air bags and side-curtain air bags, and tire-pressure monitoring.

Standard equipment also included GM's OnStar communications system, XM satellite radio, dual-zone automatic climate control, power windows and driver's seat, motorized and heated outside mirrors, cruise control and remote locking.

But it also had a load of options, including a navigation system, a dual sunroof, upgraded audio system, leather upholstery, heated and cooled front seats with memory settings, wood interior trim, a power tilt-and-telescoping steering wheel, and polished 18-inch wheels. Taking a cue from its European competitors, Cadillac also charged $995 extra for the "crystal red premium paint." The bottom-line sticker came to $48,585.

The interior fit, finish and overall quality is immediately noticeable. The real wood inlays are polished to a furniture-like sheen, and the leather on the seats and door panels looks as if it were hand-stitched. Comfort in the front seats is first-cabin, with a myriad of adjustments to the seats and steering wheel to accommodate any size driver.

In back, the seats are nicely coved and provide supportive comfort for two. There's a seatbelt for a third passenger in the middle, but forget it. A prominent hump in the floor eliminates foot space, and the seat is a hard perch.

At 14 cubic feet, the trunk is a decent size. But the opening is small, so big items won't fit. There's a pass-through to the passenger compartment for longer items.

The CTS has a few shortcomings. The shade for the sunroof is some sort of perforated translucent fabric, which does a poor job of blocking bright sunlight. There are overhead assist handles for rear-seat passengers, but none up front. And there are no rear-door pockets. The parking brake is a step-on type instead of the preferred handle between the front seats.

But none of this detracts much from the overall goodness of this world-class car.