GM's Cadillac CTS improves sports sedan ranking

CHICAGO (Reuters) - General Motors Corp's GM.N 2008 Cadillac CTS moved up in Consumer Reports' ranking of sports sedans, passing BMW's (BMWG.DE) 328i and Daimler's (DAIGn.DE) redesigned Mercedes-Benz C300 models, the magazine reported in its March 2008 issue.

The CTS scored an "excellent" overall score, topping the 328i and C300, both of which received "very good" overall scores, Consumer Reports said. The CTS also ranked above some previously tested sports sedans, including Toyota Motor Corp's (7203.T) Lexus IS250, Honda Motor Co Ltd's (7267.T) Acura TSX and Volkswagen's (VOWG.DE) Audi A4.

Improving how consumers view its cars is crucial to the turnaround at GM, which lost more than $10 billion in 2005 and 2006 and is in the midst of a restructuring. Achieving recognition from magazines like Consumer Reports could be valuable to the No. 1 U.S. automaker's marketing efforts.

The CTS now ranks third among 12 sports sedans tested by Consumer Reports at its center in Connecticut, trailing Nissan Motor Co Ltd's (7201.T) Infiniti G35 and Honda's Acura TL, said the magazine, which is published by nonprofit organization, Consumers Union.

"The Cadillac CTS now competes toe-to-toe with some of the best German and Japanese sports sedans," David Champion, senior director of automotive testing for Consumer Reports, said in a statement.

The CTS model tested carries a suggested retail price of $40,835, compared with $39,175 for the 328i and $37,325 for the C300, the magazine said. GM's Saab 9-3 Aero, which also was tested, has a price tag of $37,815.

The 328i and C300 ranked roughly mid-pack among all the sports sedans, while the Aero received a lower overall score but still finished in the "very good" range, the magazine said. The Saab finished near the bottom of the rankings.

But only the 328i and 9-3 were recommended by Consumer Reports, as the CTS and C300 are too new to judge their reliability.

The magazine also tested two versions of the redesigned Chevrolet Malibu, the four-cylinder LT and V6-powered LTZ. The new Malibu now ranks among the best family sedans in Consumer Reports' ratings, just below the Nissan Altima, Honda Accord and Toyota Camry.

The more expensive LTZ posted an "excellent" score, while the LT achieved a "very good" overall score, the magazine said.

(Reporting by Ben Klayman, editing by Leslie Gevirtz)