In a move to make the new CTS more appealing to European luxury buyers (read: compete with the Germans), Cadillac will begin offering their mid-sized sedan with a diesel sometime after its initial launch in October of this year.

Automotive News' sources are claiming that Italian engine manufacturer, VM Motori, will be tapped to produce the oil burner, likely a 3-liter V6, producing around 250 HP.

Considering that GM expects to sell approximately half of it European CTSs with diesels, and only 464 sedans were sold in 2006, this decision is crucial to the success of Cadillac abroad.

Also of note: AutoExpress is reporting that the Saab-based BLS and the new CTS will get wagon variants in the coming years. Expect the BLS estate to debut in Frankfurt, while the CTS will be unveiled sometime in 2008. No word yet on whether or not we'll be seeing the CTS wagon in the U.S.

[Sources: Automotive News - Sub. Req., AutoExpress]

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