The 2014 Cadillac CTS makes its debut at the recent New York International Auto Show.

In its first two incarnations, the Cadillac CTS was a so-called “tweener car,” sized somewhere between the BMW 3-Series and the bigger 5-Series.  And that was reflected in a price tag smaller than comparable European models.

Not anymore.  When the 2014 Cadillac CTS rolls into showrooms later this year it will be more directly targeted against its bigger German rival – and it will carry a larger MSRP, as well, the maker has announced, more in line with the BMW 5-Series.

That means a starting price of $46,025 for the third-generation CTS, up from around $40,000 today – and much closer to the $48,725 base BMW 528i. The totally redesigned Caddy won’t quite reach as high as its German rival, however.  The new, high-performance CTS Vsport will go for $59,995 compared to $65,925 for the BMW 550i xDrive – the BMW term for all-wheel-drive. And the German maker’s own super-performance model, the M5 will set you back $92,425.

The original CTS introduced Cadillac's Art & Science design language. The new model takes it in a new direction.

The CTS will be offered with a choice of either a 2.0-liter turbocharged four-cylinder engine or a 3.6-liter V-6.  Those packages can be ordered in either rear- or all-wheel-drive.  The Vsport, meanwhile, will introduce GM’s first-ever twin-turbo powertrain, a V-6 delivering an impressive 420 horsepower. Paired with a new 8-speed automatic, the CTS Vsport will be available only in rear-drive.

(For more details on the 2014 Cadillac CTS, Click Here.)

Whether buyers will be willing to pay the higher premium for the 2014 Cadillac CTS remains to be seen, however.  General Motors’ flagship division has been having a good year, sales rising 10% last month alone, but it is still a pale shadow of its former self, struggling to catch up to not only BMW but Mercedes-Benz and Lexus after decades of leadership in the luxury market.

Caddy this week chose a new ad agency – dubbed Rogue, a consolidation of three agencies, in fact, owned by Interpublic Group — to help launch the CTS and promote its push to become a more global brand.

(Cadillac Goes Rogue. Click Herefor the story.)

The maker has heavily depended upon the CTS over the past decade, the line becoming its best-seller with a mix of sedan, coupe and wagon variants.  Senior company officials recently said that while they expect the 2014 CTS to also deliver credible sales numbers, the brand’s new and smaller ATS model is likely to become its best-seller.

Targeting the vaunted BMW 3-Series, the ATS was given a much-needed nudge early in the year when it was declared North American Car of the Year by a panel of 50 U.S. and Canadian journalists.

(China soon to become world’s largest luxury car market. Click Here for more.)

GM also introduced the new XTS for 2013 but while it will remain the biggest sedan in the new Cadillac portfolio, the 2014 CTS is expected to appeal more to those who want a direct alternative to European luxury cars.

The new model will initially be introduced in sedan configuration only. A coupe is expected to follow, though Cadillac is not anticipated to revive the CTS wagon. Though well-reviewed by the automotive media, especially in V-Series trim, it generated little sales volume.

Meanwhile, the GM brand is expected to launch an even more high-performance model than the CTS V-sport over the next several years. It would be targeted more directly up against the BMW M5.

As if taking on the BMW 5-Series won’t be tough enough, the 2014 Cadillac CTS will also be going up against the new Mercedes-Benz E-Class, as well as recently updated versions of the Audi A6 and Lexus GS sedans.

(Click Here for a first review of the 2014 Mercedes-Benz E350 sedan.)