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Edmunds.com, an American online resource for automotive information, pitted the fresh-from-the oven 2013 Lexus IS250 against the Cadillac ATS 2.0 and the compact luxury segment leader, the BMW 328i. The IS250 is powered by a naturally-aspirated 2.5-litre V6 which is good for 204bhp. The 328i and ATS are both propelled by their respective 2.0-litre direct-injected, turbocharged four cylinder which produces 240bhp and 272bhp respectively. This is the third generation of the Lexus IS. However, will it be third time lucky against the BMW 3 Series?

[extract] Cadillac

GM has confirmed plans to build an all new small luxury car named the Cadillac ATS to compete with the likes of BMW 3 series and Mercedes Benz C Class. In order to do so, GM will invest $190 million in their Lansing Grand River assembly plant for the production of the new entry-level Cadillac. While the company is staying mum on details, CEO Dan Akerson said "America's fastest-growing luxury brand this year is about to get even more competitive with the addition of an all-new small luxury car." He added, "This investment demonstrates GM's commitment to Cadillac and to a strong U.S. manufacturing base." The car is expected to be launched in late 2012 or early 2013, and will slot below the CTS. Set to ride on the rear-wheel drive Alpha platform, which will also underpin the next-generation CTS and Chevrolet Camaro, the ATS will reportedly be offered as a sedan, coupe, convertible, and wagon. Additionally, the company has previously stated the car will feature high-tech engines and optional all-wheel drive.