Keeping track of letters and numbers in the Cadillac lineup has become a full-time job, with the brand adopting a slew of new model names: CT4 and CT5 sedans, with XT4, XT5 and XT6 denoting new SUVs.

For the new CT5 sedan, one letter is worth committing to memory: “V,” as in CT5-V. This version, easily the standout of the lineup, starts from $48,690. Admittedly, that’s a significant jump over the $37,890 ask for a base CT5 with a slow-footed, 2.0-liter turbo four-cylinder and 237 horsepower. A CT5 Premium Luxury at $45,190—with 335 horsepower from a twin-turbo, 3.0-liter V6—splits the price-and-power difference. That one is also worth a look. Adding AWD to these rear-driven sedans adds $2,600 or $3,090, depending on the model.

2020 Cadillac CT5-V
With a twin-turbo V6, Brembo brakes, and GM’s revered Magnetic Ride Control 4.0 adaptive suspension, the CT5-V heightens the driving experience considerably. Cadillac

It’s the CT5-V that puts Cadillac into the conversation with rivals, including the BMW 3-Series, Mercedes C-Class and Audi A4. That’s despite on-paper specs that pale before its predecessors. The departed CTS-V brought a ridiculous 640 horsepower from a supercharged, Corvette-based V8. The mid-grade sorely overlooked CTS V-Sport—arguably the best all-around luxury sedan from an American maker at the time—had 420 horsepower.

A sport-sedan lover might see the relatively slight 360 horsepower of the CT5-V and say, “Is that all?” But the CT5-V underlines a truism: A genuine performance car is about more than massive horsepower. And this Caddy is hardly slow; its twin-turbo V6 and slick 10-speed automatic transmission serve up 60 mph in a fleet 4.6 seconds. (A hefty 405 pound-feet of torque is one brag-worthy number, however, easily topping the 369 of BMW’s M340i).

Numbers aside, the CT5-V is one of the most engaging, big-hearted, fun-to-drive sedans in today’s showrooms. Dynamically, the other CT5’s are fine but unexceptional. Every time one dials the steering wheel or feels the right-now power of by-wire electronic brakes, it’s clear that Cadillac’s skilled engineers love to drive and care about drivers.

While the CT5-V may not pack the same amount of muscle as previous Cadillac performance models, it’s twin-turbo 3.5-liter V6 is engaging and balanced it the tradition of great sport sedans. Cadillac

Every detail has been sweated, including finessing the Alpha platform that’s already produced slick-handling models like the ATS-V and Chevy Camaro. After three hours of untangling knotted roads in New York’s Hudson Valley, both car and driver felt ready for more.

In some ways, the Caddy’s sparkling performance shouldn’t surprise. Beneath its handsome new skin—aside from weirdly shaped rear roof pillars that have drawn near-universal brickbats—the CTS-V bristles with technology from the acclaimed, mid-engine Corvette C8. That includes the latest MagneRide magnetic dampers at all four corners, which sense and adjust to the road every five milliseconds. There’s the Brembo brakes and GM’s Performance Traction Management System (PTM). The latter is like a video game for “players” of varying skill. Five stepped modes gradually dial back safety oversight from traction and stability controls, putting more control in the driver’s hands. Move up to Sport 2 or Race modes, and the CTS-V flexes all the muscle at its disposal, sending maximum thrust to the pavement through its eLSD system, or electronic limited-slip differential.

The bummer is that the PTM tech is fiendishly difficult to access. For instance, BMW lets one choose onscreen performance settings and store them on a pair of steering-wheel buttons; the Cadillac requires complicated moves through console switches that feel like entering secret nuclear codes. Without a walk-through or a trip to the owner’s manual, most drivers would have no clue how to access one of the Caddy’s most sophisticated features. A more straightforward button toggles the Cadillac through Tour, Sport and Track modes to adjust the transmission, suspension and other parameters—including pumping digitized V6 sound through the audio system. However, the extra audio oomph makes the Cadillac heavy-metal loud inside at the highest setting, an effect that can become wearying.

Though some criticized the styling of the rear three-quarter view—particularly where the roof line meets the beltline—the proportions are otherwise right on target. Cadillac

The rest is easy, including the latest version of Cadillac’s oft-maligned CUE infotainment system, now with a faster-acting touchscreen and physical buttons for climate and essential audio functions. Inside, the Cadillac dials back its usual, busy mix of materials and shapes for a cleaner presentation.

Unfortunately, some of those materials remain the hard, unappealing plastic one might find in a Chevrolet. It’s a comfortable, fully-featured cabin, from an (optional) navigation system and head-up display to the CT5-V’s alloy driver’s pedals and magnesium paddle shifters. But consumers won’t confuse the CT5’s interior with the decadent digs of a Mercedes, or even a Genesis for that matter.

The interior (CT5-V pictured) is handsome, but some of the materials used are just a tick behind those used in its European competitors. Cadillac

The CT5 addresses another competitive shortfall of its CTS forebear, carving out 2.7-inches more rear legroom, though the CT5 is a tad shorter overall. (Thank a CT5 wheelbase that’s stretched by 1.5 inches). But the CT5’s cargo packaging remains poor. On paper, the trunk holds a reasonable 11.9 cubic feet, but its ultra-narrow layout detracts from actual utility; the class-leading BMW swallows 40 percent more.

Yes, the CT5-V demands a $10,800 premium over a base CT5 and $3,500 more than a Premium Luxury model. But value is relative: The CT5-V costs $14,000 less than the 420-hp CTS V-Sport that it essentially replaces. Stuffed with options, our CT5-V checked out at $56,305. That undercuts comparably equipped European sport sedans, including some that are nowhere near as entertaining to drive. All Cadillac needs are for Euro-sedan buyers to remember the letter “V” at shopping time.