The name is relatively new, but the general shape of the 2021 Cadillac CT4 might seem familiar. Introduced for 2020, the CT4 is clothed in the latest iteration of Cadillac’s angular art & science design language, but the model is really a redesign of the departed Cadillac ATS, which ran from 2014 to 2019. That’s no bad thing for keen drivers, because like the ATS, the CT4 is an engaging experience and a bargain.

The 2021 Cadillac CT4 is based on an updated version of GM’s Alpha platform, which was originally created for its predecessor, the Cadillac ATS. The rigid, rear-drive chassis is an engaging and fun drive.  Cadillac

In redesigning its smallest vehicle, Cadillac not only improved the car, it also lowered the price. The base model 2021 CT4 Luxury starts at $34,390 including destination fees. That’s $3,900 less than the base model ATS sedan cost in 2018. (In 2019, Cadillac offered only the ATS Coupe). Cadillac’s goal was to realign its smallest car to compete against smaller entries like Audi’s A3 and the Mercedes-Benz CLA.

It undercuts many of its rivals on price, and while the base version isn’t all that fast and lacks some features, the rear-wheel drive CT4 is a driver’s car and compares well to the driving experiences of its German rivals. 

The CT4 gets a slew of upgrades for 2021 including available Super Cruise technology. The feature allows hands-free, semi-autonomous driving on highways and interstates. Other new items include an optional 12-inch reconfigurable digital instrument cluster and a new, mostly cosmetic, Diamond Sky package.

The clean, long lines of the CT4 are the latest iteration of Cadillac’s Art & Science design language. Externally, it’s about the same size as an Audi A4 or BMW 3 Series.  Cadillac

There are four trims, starting with the Luxury and moving up to the Premium Luxury ($38,590 including destination fees), Sport ($39,690) and V-series ($45,890). The base engine on the first three trims is a 2.0-liter turbocharged four-cylinder making 237 horsepower, mated to an eight-speed automatic.

The CT4-V offers a much more powerful 2.7-liter turbocharged four with 325 horsepower. The V offers some of the performance mojo of past V-series cars in a more mainstream package. The arrangement is similar to BMW’s M340i, which wears an M badge but sits below the M3. Cadillac will target the M3 in 2022 with the scorching 472-horsepower CT4-V Blackwing. 

For drivers who want some of the performance of the V in a more subdued package, a 310-horsepower version of the 2.7-liter engine is a $3,900 option on the Premium Luxury trim. Both 2.7-liter engines are mated to ten-speed automatic. The CT4-V always delivers an engaging drive, but the ten-speed sometimes struggles find and hold the right gear. All-wheel drive is optional on all trims.

The CT4’s interior looks good and uses nice materials, with multi-toned fabrics and accents available.  Cadillac

2.0-liter CT4s return average fuel economy for the class, with rear-wheel drive models returning 23 mpg city, 34 mpg highway, and 27 mpg combined, with all-wheel drive versions returning 23, 32 and 26, respectively. The 2.7-liter versions are a little below average, losing 2-3 mpg in every measure. The All-wheel drive 2.7-liter models return 24 mpg combined, the CT4-V 23.

The CT4 rides GM’s rigid Alpha platform architecture, one of GM’s better chassis tuning and performance efforts in recent years. It offers excellent dynamics in a segment full of good performers. Despite its sporty leanings, the CT4 still delivers a Cadillac-quality ride, even over broken or uneven pavement. Potholes and bumps are soaked up without issue, and the car remains plated and confident the entire time.

The CT4’s cabin is clean and simple but feels and looks upscale. Lower trims get leatherette and lesser materials, but top trims get rich leathers, ambient lighting and memory features for the seats and mirrors. Regardless of configuration, passengers are always aware of the car’s tight quarters. The CT4 is five inches longer than the old ATS, but the interior isn’t any bigger.

The CT4’s Achilles’ heel is its back seat, which is definitely on the small side and comparable with smaller vehicles like the Mercedes-Benz CLA.  Cadillac

Inside, the CT4 really does compare to smaller cars like the BMW M235i Gran Coupe and Mercedes-Benz CLA, but it’s marginally bigger than a 3 Series on the outside.

The cabin is tight, and though the front seats are comfortable, tall adults will have a hard time finding a good seating position. The same is true of the back seat, which is short of headroom and legroom. Parents with car seats will find a tough time loading and unloading kids and may find that there just isn’t enough room for large rear-facing seats with adults in the front. The 10.7 cubic-foot trunk is small among the smallest in its class.

Cadillac has improved its infotainment system to the point that it’s nearly on par with some of the best in the business. Wireless Apple CarPlay and Android Auto are standard, as is an easy-to-use 8-inch touchscreen display. Navigation and wireless phone charging are also available, but require packages that can add up to $2,200.

The optional 2.7-liter turbocharged four makes the CT4 Premium Luxury nearly as quick as the CT4-V, but at a lower price. It also undercuts cars like the BMW M235i xDrive Gran Coupe even with optional safety extras factored in.  Cadillac

The CT4 hasn’t yet been crash tested by either the Insurance Institute for Highway Safety or the National Highway Traffic Safety Administration. A good safety suite is available but comes at a price, which is unfortunate at a time when some non-premium brands offer such features standard. All CT4’s come with automatic emergency braking with pedestrian detection, but other systems like lane departure warnings, adaptive cruise control and blind spot monitoring cost up to $1,800 extra and are not available on the base Luxury trim. Super Cruise is available only on the CT4-V, at $3,100 addition.