The BMW 3 Series, Audi A4 and Mercedes-Benz C-Class are the big players in the premium compact segment but Cadillac has finally stepped up to the plate to offer American consumers a home grown alternative in the ATS saloon that was revealed at the Detroit Auto Show.

It would have been easy for General Motors (Cadillac's parent company) to develop a cut down CTS or modify the platform that underpins the Vauxhall Insignia, but to compete with the 'Big Three' GM knew it had to create a brand new platform that was honed at the Nürburgring to offer European levels of handling and refinement. With this in mind the ATS rides on a combination of independent rear suspension with MacPherson struts up front and features a magnetic ride control system that can be adjusted by the driver for a sportier feel.

In addition to the Nürburgring finishing school the ATS was also put onto an un-American diet of aluminium, magnesium and other weight-saving technologies meaning it weighs in less than its competitors and has a near perfect 50:50 weight distribution.

At launch three engines will be offered: a 2.0-litre four-cylinder turbo with 270bhp, a 2.5-litre, 200bhp four-cylinder and a 3.6-litre V6 with 318bhp. Customers have the choice of a six-speed manual or automatic transmission.

No word yet on whether or not the ATS will come to the UK, but if it does Cadillac will need to add a diesel engine to the line-up to entice buyers out of their 320ds.