Cadillac has announced that it has started production of the new (and dare I saw awesome) 2010 CTS Sport Wagon. It will be arriving in US dealerships right about now, so you should go and take it out for a test drive!

Sport Wagon Highlights

• 58 cubic feet of storage with the rear seats folded
• available 304 hp direct injected V6
• RWD standard, AWD optional
• Standard power programmable lift-gate
• Best in-class fuel economy

Marketing

It’s important to pay attention to the way Cadillac is marketing the CTS Sport Wagon. Specifically, the word “sport” shifts the perspective away from “wagon,” a product that hasn’t been very popular among American consumers who tend to prefer sedans, SUVs, and CUVs.

Moreover, the “Sport” moniker further proves our theory that Cadillac will cater to the “performance luxury” market while Buick will serve the “pure luxury” buyer in GM’s brand portfolio (as discussed in our podcast here).

Competition

While some industry analysts tend to think that the CTS sedan and Sport Wagon compete with vehicles such as the BMW 3-series, Mercedes-Benz C-Class, and Audi A4, further research shows that the CTS and its Sport Wagon variant actually go head to head with the next class up. In particular, the BMW 5-series, Mercedes Benz E-Class, and Audi A6 (sedan and wagon models) are more direct competitors to the CTS/CTS Sport Wagon. A quick look at the size comparison charts below shows exactly why this is.

What’s great is that the CTS Sport Wagon undercuts the competitiion in price by a few thousand dollars while not compromising on looks, performance, features, or comfort. It is also the only premium wagon that’s available with a choice of engines – the 3.6L tuned to 304 hp and the 3.0L that’s good for 270 horses. On top of that, the CTS Sport Wagon return best-in-class fuel economy.

CTS Sport Wagon vs. mid-size luxury wagon market (its true competition)

CTS Sport Wagon vs. Mid Size Premium Wagon Market

CTS Sport Wagon vs. compact luxury market (not its competition)

The Official Cadillac blog]