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We've already seen one of the single most important new models of the 2008 model year. It is the 2008 Cadillac CTS and it made its world debut in January at Detroit's auto show, followed by a February curtain call in Toronto at the auto show.

The CTS is, of course, vital for Cadillac. It is also significant for the car business as a whole. If this new "entry-lux" sedan is the hit Cadillac general manager Jim Taylor thinks it will be, look for a major shake-up in public perception: Detroit just might finally be seen as a contender in a game it has never been truly able or even willing to play.

That is, not one of the Detroit-based auto makers has made a dent, made any sort of real impression, in the fastest-growing segment the whole auto industry — entry luxury cars where trend-setters come to shop for their first upscale automobile.

Sure, sure, the first generation CTS did well by Cadillac standards; in 2006 General Motors' luxury brand sold 54,846 CTS cars. Sounds impressive until you look at what everybody else did.

Consider: Last year the world's No. 1 selling premium brand, BMW AG, sold 508,479 3-series cars, the target of the CTS. And in 2006, BMW sold more than 120,000 3-series cars in Canada and the United States alone. The story at Mercedes-Benz is similar. The entry-lux C-Class is Mercedes' best-selling model.

The other models in this segment are similarly critical to their premium brands, both in terms of raw sales numbers, but also for image building. Where would Lexus be without the IS and ES? Audi? The A4 and A3 are the volume cars and the brand builders among the under-40 set? Without them, Audi in North America is just a niche brand.

Acura's TL and TSX? Yes, these are dressed-up versions of Honda Accords sold here and in Europe. Nonetheless, they are also very interesting near-luxury cars.

The Infiniti G35? The closest thing any Asian auto maker has ever come to making a 3-Series. Jaguar X-Type? Aging and never really a success, but still better than you might think. Lincoln MKZ? So what if it started out as a Ford Fusion; the MKX is a very decent affordable luxury sedan.

There are also some Swedish entries to consider, though the data suggests they are not often cross-shopped with the core models in this group. We'll mention them anyway, though we've not included thumbnail reviews.

One is the Saab 9-5. This GM brand still has its loyal followers and the safety side of the story is huge. Volvo S40 and S60? True, the S40 shares a platform with the Mazda3 and European Ford Focus. But again, so what? The mainstream, under-$20,000 roots of the S40, roots tied to the Mazda3 and the Focus, are very hard to detect in the S40's driving and the design.

We'll also note Chrysler's 300C. As one buyer said, it is the previous generation Mercedes-Benz E-class, at half the price. The Chrysler brand is certainly not as strong as the car itself, nor is it as muscular as other brands in this group. Additionally, the 300C is bigger than any of these others and is available with a V-8 engine. For those reasons the 300C does note quite belong here, interesting as it is.

All told, these make up for an impressive group of cars — arguably the best total collection of new models in the world, dollar for dollar. All are fast, powerful, interesting to drive, stylish and technologically advanced. And none will break the bank of a budding tycoon still paying the MBA training bills.

Into this group, Cadillac is throwing the '08 CTS, due this fall. If you think the CTS's exterior is good, and it is, sit in the cabin. The previous CTS had an interior designed by accountants and crafted mainly from the GM plastic parts bin. It never really held a candle to what they are doing at Audi, Mercedes and BMW.

The new CTS shows that GM has somehow managed to get its act together. The cabin features sweeping surfaces, with integrated buttons and knobs that look more custom-made. Soft, ambient lighting is piped along the doors. Seats also sport a minimalist, jewel-like chevron insignia.

"This time we got into the really fine details," says Taylor, the Caddy general manager, a Canadian engineer who oversaw the development of the original car and the rear-wheel-drive Sigma platform on which it rides.

Taylor points to the "cut-and-sew" process in which coverings on the instrument panel, centre console, and door trim are cut, sewn, and wrapped by hand. This allowed for flourishes such as French stitching. Not in three lifetimes has Cadillac ever given this attention to interior quality. Taylor says this attention to detail adds cost and its is worth it.

"All the manufacturers know the new game in town is interiors," he says. "The exterior is still the hook, but how you live with the product, well, that's all on the inside."

The new CTS will likely start in the high-$30,000s, which is exactly where all these rides start their pricing. So the '08 also shows progress in GM's efforts to control costs.

Bob Lutz, GM vice-chairman and head of global product development, says that while the "new CTS is a much more capable and attractive car, it also represents phase two of the Cadillac renaissance." Talk about significant.

Because of this, rival auto makers are itching to get their hands on a production version — to see what Cadillac has done, and to determine whether GM has finally managed to build the real deal in entry lux. Will Cadillac put in dealer showroom the same car we have seen so far only at auto shows? That is the question.

When the new CTS arrives, the competition will carve up and break down every piece of it. They will assess the car as a whole, and then dig into every system. After that, they will pick through individual components, one after another. Then the verdict on whether or not the new CTS is a game-changer.

While waiting, we've done something similar with the cars already in this segment. Here's what we learned:

Lexus IS 250/350 (Base price: $36,400)

This is the sporty Lexus sedan. Interesting, but hard-core fans of BMW's 3-Series are not likely to abandon their cars en masse for a Lexus with an engaging personality. Nor will partisans of Infiniti's G35.

So who will be interested? First up, those buyers who want to own a Lexus — the industry standard in reliability. Lexus consistently scores at the very top of J.D. Power and Associates' quality measures. Lexus also wins enthusiastic recommendations from the widely followed Consumer Reports magazine.

The IS 350 is the top model in the IS line ($49,000). The lineup also includes the IS 250 with rear-wheel drive ($36,400) and the IS 250 with all-wheel drive ($42,000). Quite a pricing spread, as you can see.

The IS is tight inside, handsome outside and it goes, stops and steers very, very well. We are not talking about a car perfect for race tracks, but if you want a ride with comfort and poise, this is a good choice.

It all starts with a push of the ignition, starting a growling response from under the hood. The engine in the 350 is rated at 306 horsepower and will whiz the car from standstill to 100 km/hour in less than six seconds. Fast.

Roar ahead hard using the automatic transmission's manual-shift mode and you'll find the engine hits its redline almost before you're ready to shift. Manually or automatically executed, the gear changes are slick, smooth and quick. This tranny is nearly as soul-satisfying as Audi's DSG manual-shift automatic. Nearly and that's a compliment.

The less-powerful IS 250, especially with the extra weight of AWD (all-wheel drive), is less thrilling due to its smaller, 204-hop engine. Slower though it is, the IS 250 with AWD benefits from a good system with no end-to-end grabbiness.

Unfortunately, the IS 250 AWD has an annoying bump in the front floor on the driver's side. It is there to accommodate the AWD machinery underneath. Thankfully, the AWD system delivers sure-footed confidence in slippery corners. And in those corners, there is little body lean.

A big downside here, and a fairly consistent theme among all in this group, is the second-row seat. When the front seat is slid all the way back, it almost touches the rear seat cushion. If you are buying a four-door sedan, you expect to use the back seat. Well, in this case only if you are loading kids, carrying your gym bag or groceries.

Size could be an issue for many, here. The upside is this compact sedan is quick and responsive in all sorts of driving.

Lexus ES 350 (base price $42,900)

The ES 350 is for people who don't care about 0-to-100 km/hour acceleration times and racy slalom runs. If you want an ES 350 you want a comfortable, quiet, dependable four door with respectable looks. To sum: the ES 350 is a wonderfully capable and almost completely emotionless automobile.

Now unlike the IS, which rides on its own platform, the ES 350 is based on the Toyota Camry. With its 3.5-litre, 272-horsepower V-6 and six-speed automatic, the ES 350 never feels as if it lacks for power. Smooth is the word that applies to everything from the ride to the way the transmission shifts gears.

The conservative tires (215/55-17) are quiet, and their relatively tall sidewalls help to squelch impacts. The priority here is refinement over performance. The only question is: Did Lexus go too far in its quest to isolate the driver from the experience of driving. It is as though the Lexus engineers were ordered to smother any road manners with a pillow.

Meanwhile, the interior is excellent. The dark, soft-touch dashboard strikes a soothing contrast with the cream seats and walnut accents on the console and doors. High-society options include a rear-view backup camera, power rear sunshade and heated and ventilated seats.

If you want your car to be a tranquil, trouble-free escape from the world, here you go.

Audi A4 (base price $35,310)

In this group the A4 may have the most conservative design of all. True, the A4 has Audi's yawning grille, the clear-glass headlights and creases in the hood that give the car a "power bulge." But somehow the whole package comes together to make a subdued statement. Attractive and plain in a Katie Holmes sort of way.

The starter model is a front-driver; if you want AWD it is a step up to $40,890 for A4 2.0 T Quattro. That would be the four-cylinder, turbocharged one (200 hp). The 255 hp V-6 (A4 3.2) starts at $49,475.

The 2.0-litre four-banger is a performance version of parent Volkswagen's direct-injection gasoline engine family. It makes an impressive 100 horsepower per litre, so the car is no slouch.

Yeah, so what? The V-6 is far better. The base tranny is a nice six-speed manual. With the V-6, the gearbox of choice is a sweet six-speed automatic with Tiptronic manual-shift capability.

The A4 has a world-class cabin, right down to the cup holders. Still, like several in this group, there is simply not enough leg room in the rear seats, not for adults. And that wide centre stack really encroaches on the driver's knee and legroom.

Two last major points: This Audi is the top performer in crash tests, which means if safety is a concern, shop here. On the other hand, Audi quality is a work in progress — if you believe the researchers.

Audi A3 (base price $33,800)

The base price refers to the front-drive A3. If you want Quattro AWD, then the starter model in Canada goes for $45,690. The former has a 2.0-litre turbo four-cylinder, the latter a V-6.

The A3 hatchback is smaller and less expensive than the A4 and it shares a basic chassis, transmission and many other parts with the VW Jetta. That's where the similarities end.

The A3's hunkered-down body is defined by creased flanks, well-defined wheel arches and a low, aggressive-looking front end. The grille, the now-classic Audi grille, is a matter of personal taste. My last tester came with a sport package that included larger wheels. The whole thing gave the car a race-ready appearance.

Inside, the leather seats of my AWD tester were brilliant. There is a shocking amount of head room and leg room in the back seat, too. We're not talking about a limousine, but for two adults to ride comfortably for hours instead of minutes.

This matters because driving the A3 is just plain fun. The 250-horsepower V-6 is powerful and responsive. The six-speed automatic with the paddle shifters is an amazing work of engineering. One issue is the higher-than-normal level of road noise.

Over all, this car looks great, drives very well and has more people and cargo space than you might think.

Acura TL (base price $42,500)

In a world filled mostly with rear-drive cars in this segment, the TL is a front-driver. True enthusiasts will say that's it, off the list — not a truly sporty sedan.

Hold on. First, the TL is approaching its last year before a major upgrade, so we have a track record of reliability here. It's outstanding. The 258-hp base version is powerful and fast and comes with all sorts of luxury items.

The best this car has to offer is an excellent Panasonic stereo with eight speakers, a six-disc in-dash CD changer and DVD audio. The latter splits the sound into six channels for extraordinary results.

Acura also offers a truly loaded version, complete with Acura's excellent DVD-based navigation system, for $45,600. And the 286-hp Type S is for the go-fast crowd.

The styling might be a contentious bone with some. The long nose seems dated at a time when so many others are pushing the wheels of their cars right to the corners. Do note, though, that inside the design is very good and very functional. For instance, the front seats are comfortable and supportive, and the back seat can accommodate two adults.

The point is, if you're looking for pampering, luxury, reliability and excellent safety scores all at a competitive price, the TL is not to be overlooked.

Acura TSX ($36,100)

This is one of my very favourite cars even now, several years after its introduction.

The TSX is a neat and unadorned sedan that went on sale in 2003. It has a firm suspension, neatly finished leather interior and a high-revving engine that make it feel and sound like a sports car.

The TSX also comes standard with luxury and convenience equipment that costs extra on other cars: heated, power-adjustable leather seats, a fine stereo and 17-inch wheels with performance rubber. You'll pay more for these on many competitors. One of the few options is a $2,800 navigation system, with a huge screen.

Like others, the cabin is a bit tight in back, but the fit and finish are excellent. If you can live with that, you will find the TSX delivers on the road, where a smooth, 205-hp engine accelerates the 1,488 kg car to 100 km/hour in about seven seconds. The technically advanced four-banger is good, but for some it will never have the appeal of six-cylinder motors from BMW, Infiniti and Mercedes.

The appeal for me is in the smooth engine and nifty handling. The appointments are luxurious and the drive on twisting roads is a delight — stable, with a taut suspension and steering that is sensitive but not twitchy. And rowing the gears of the silky six-speed transmission is a treat.

Infiniti G35 (base price $39,990)

This car flat goes. The 2007 G35, a rear-driver, and its AWD sibling the G35x, have only been on sale for a few months, yet in that brief time the new version of the G is winning converts with its tight chassis, free-revving engine and tasteful styling. Take a run on a snaking road and see what I mean.

The AWD model starts at $43,300; at this price it offers good value. The engine (306-hp V-6) and five-speed automatic transmission make for a pair from heaven.

The G's AWD system can shift up to 50 per cent of power to either end, as conditions dictate, and this helps to stabilize the ride at higher speeds along twisty bits, and also offers winter traction benefits.

In addition, there is something called 4WAS for four-wheel active steering. In a nutshell, Infiniti has engineered a system that allows for the front steering ratio to vary according to vehicle speed to improve response. It seems to work very well.

Infiniti improved the cabin compared to the old car and this is welcome. It looks and feels far richer now. Also, the centre stack of controls, including an easy-to-read navigation screen, is very useful.

Good as the cabin is all around, just remember that the inside is tight. Surprised? Not with this group.

Jaguar X-Type ($47,000)

The AWD X-Type, the baby Jaguar, is quite a nice driver and quality has improved dramatically from the poor levels of several years ago. It sticks to the road nicely and while not overwhelming in the power department (227-hp V-6), the X-Type has quick, precise steering, good brakes and nimble handling.

Alas, the seats are small and not overly well padded and the ride is noisy compared to the best of this group. The design also lacks classic proportions. I do very much like the high level of standard equipment, though.

Lincoln MKZ (base price $37,899)

Forget the front-drive version; the AWD model is a deal at $39,899. Especially since Ford has engineered a rapid evolution of a car that last year was launched as the Zephyr.

Among the changes: a new 3.5-litre V-6 replaces the 3.0-litre V-6 in Zephyr. The new engine is more powerful, quieter, smoother and much more fun. The AWD system's main benefit is in surefootedness for slick conditions. The suspension is also a bit firmer and the steering has been modified to be more direct.

On the downside, the brakes could deliver more stopping power and the turning-circle is unusually large. The MKZ has no manual-shift mode for the otherwise impressive six-speed automatic transmission.

The cabin at high speeds is especially quiet and the real wood is handsome. A metallic-finish trim is available, too. The back seat is roomy enough, which is more than can be said many of these cars.

Here's the skinny: the MKZ is a very good rival for the Lexus ES 350. That's high praise; the Lexus is an extraordinary automobile.

If you are worried about quality, Consumer Reports' latest data predicts that Zephyr will be second in reliability among upscale cars, behind only the ES 350. That bodes well for the improved MKZ.