A new V6 engine and revised suspension keynote 2004 changes to Cadillac's entry-level model, which also adds a V8 version midyear. CTS is positioned as a sporty near-luxury-sedan rival to such cars as the BMW 3-Series. The new V6 engine is a 255-hp 3.6 liter that is available only with a 5-speed automatic transmission. It joins a 220-hp 3.2 V6 that is now available only with manual transmission. The automatic transmission has Sport and Winter modes, but no manual shift gate. Antilock 4-wheel disc brakes, 16-inch alloy wheels, and traction control are standard. So are front side airbags and head-protecting curtain side airbags, plus leather upholstery and OnStar assistance. Cadillac says CTS's suspension revisions are designed to smooth the ride. Available with either engine is an optional Sport package that includes 17-inch wheels, an antiskid system, speed-variable steering assist, upgraded brakes, and rear load-leveling suspension. Among the options are a navigation system with dashboard screen and voice activation for navigation and audio functions. A sunroof, in-dash CD changer, xenon headlamps, and satellite radio also are available.

Added midyear was the high-performance CTS-V with a 400-hp 5.7-liter V8 borrowed from the Chevrolet Corvette. It has a 6-speed manual transmission, sport suspension, antiskid system, and 18-inch wheels with run-flat tires.