The 201kW/353Nm engine will feature various advanced technologies to ensure maximum fuel efficiency and performance, including twin overhead camshafts with variable valve timing, a twin-scroll turbocharger, and direct injection.
On top of this, the new 2.0-litre engine has been engineered to be as low friction as possible to help free up engine loads. As a result, General Motors says the new engine is able to produce 90 per cent of its torque at just 1500rpm.
Another standout feature of the new engine is its power/litre output of 100kW/litre. Not even a BMW M3, with it's 4.0-litre V8 producing 307kW of power, can match that. GM is promising the new engine will be the most fuel efficient engine of its kind, although it is yet to reveal fuel consumption figures.
The 2013 Cadillac ATS will come with two other engines, including a 2.5-litre and a 3.6-litre V6. All three will be rear-wheel drive sports luxury sedans, making the ATS a direct competitor for the BMW 3 Series and Mercedes-Benz C-Class.
Dave Leone, GM global vehicle line executive for rear-wheel and performance cars, recently told Automotive News, "this has been a segment dominated by German cars, and as such we've developed a compelling competitor."
Full details of the new model will be revealed at the 2012 North American International Auto Show in Detroit, starting January 9.