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GM’s vice chairman Bob Lutz has confirmed that the 556-hp Cadillac CTS-V wagon will indeed become a production reality. 0–60 time of 3.9 seconds and beefy looks, the CTS-V sedan has been a huge favorite of ours since its debut, and we can’t wait to see how the CTS-V coupe looks and drives when it finally appears next year. But this was the first we’d heard anyone willing to go on record actually confirming the wagon. Speculation and rumors, yes, but nothing official.

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Wagons don’t sit high like SUVs. They handle and perform like cars, but can also haul more stuff. So why don’t Americans like wagons? Despite the unappealing characterization and rather than opting for more exciting names such as Touring or Estate, Cadillac still decided to name the 2010 Cadillac CTS Sport Wagon just that.

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Very practical, and handling and driving like the CTS sedan, the only disadvantage of the Sport Wagon comes with the extra 241 pounds. However, this is somewhat offset by the better weight distribution. The optional 3.6-liter 24-valve direct-injection V-6 producing 304 hp gets the Sport Wagon from 0-60 in 7.0 seconds, which is 1 second slower than the sedan.

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Still, the wagon retains the CTS’s excellent handling, brakes, and steering. It also gains a Mercedes-like cargo compartment with 25 cubic feet of space in the trunk and 53 with the rear seats folded. Sportier than the comparable German competition, and at a lower starting price of $40,655, the 2010 Cadillac CTS Sport Wagon will be a surprising underdog.