Cadillac has already proved they know how to make sports saloon with the CTS-V. So the rumors of a new smaller high performance model based on the upcoming ATS is not that ludicrous. If it turns out to be true, then BMW M3 has plenty of reasons to be worried becasue the ATS-V is said to have at least 470 hp!
This is not official yet, there’s not even a leaked document to back it up, it’s just speculations of some guys close to GM and aware of what’s going on in the factories. According to them, Cadillac ATS-V will feature a more efficient version of the CTS-V’s 6.2 liter V8. But instead of 552 hp it’ll only get 470, because that’s enough to beat the competition, mainly Mercedes C63 AMG and BMW M3.
The thing is, until 2014 both Mercedes and BMW will probably come up with newer more powerful versions of those car! The normal ATS model will be available with a 3.6 liter V6 and a 2.0 liter Turbo four-pot.
More details here: Cheers&Gears