The second generation Cadillac CTS launched in 2007 built on the upgraded Sigma II platform. Featuring wider track dimensions, flared wheel arches, and a sculpted exterior design, the interior introduced hand-stitched leather surfaces, a retractable touchscreen navigation display with a 40 GB music hard drive, and a Bose 5.1 Cabin Surround audio setup. Unique in Cadillac's modern history, the body offerings expanded beyond the sports sedan to encompass the CTS Sport Wagon in 2009 and the sharp-angled CTS Coupe in 2010. The exterior design incorporates distinctive body proportions, sharp character lines, and an iconic front grille featuring the brand's emblem.

Engine options centered on direct-injected DOHC V6 gasoline powerplants: a 3.0-liter producing 270 horsepower and a 3.6-liter outputting up to 318 horsepower, paired with six-speed manual or automatic transmissions and available active all-wheel drive. The extreme performance CTS-V model packed a supercharged 6.2-liter LSA V8 producing 556 horsepower and 551 lb-ft of torque, setting historic production sedan lap records on international circuits. Standard and optional equipment included advanced active and passive safety systems, multi-zone climate control, and upgraded interior electronics.