The CTS
CV is a world class car for sure
http://www.cadillac.com/09ctsv/ it does rival and beat some amazing cars.
However, it's not enough to carry the brand as a rival to the Germans. One car, especially when mostly associated with the brand for floaty riding, senior citizen (and there is nothing wrong with that, good volumes in that target market can be sold) cars can't make an entire brand competitive to German cars in a global market. The sales volumes expected to make this car in the future depend on the US market.
Unfortunately, this car and others like it that are greatly appreciated by car enthusiasts are a niche vehicle with not enough volume to save a brand or possibly to survive going forward.
We are going to see some major cuts soon - volume is going to be key, niche's that focus (especially if they are not higher mileage oriented) on the American market will begin to disappear from the American manufacturers like turning off a light.