Direct injection technology helps the Cadillac CTS offer more power while maintaining fuel economy and lowering emissions. It delivers fuel more precisely to increase the efficiency of combustion. This means less fuel is consumed and lower emissions created.

With the Cadillac CTS Sport Wagon's 3.6L V-6, direct injection translates to 304 horsepower (227 kW)*, no loss of fuel efficiency and a 25-percent drop in cold-start hydrocarbon emissions. It also runs on less expensive regular unleaded gasoline. The Sport Wagon's fuel economy is expected to be similar to the peak rating of the existing sport sedan's 26 mpg highway rating. The standard 3.6L VVT engine that produces 263 horsepower (196 kW) and 253 lb.-ft. of torque (343 Nm) serves as the base engine in North America.

Just like the Cadillac CTS sport sedan, the V-6 engines are matched with fuel-saving six-speed transmissions, including an Aisin six-speed manual or an electronically controlled Hydra-Matic 6L50 six-speed automatic. As is the case on the sport sedan, Cadillac CTS Sport Wagon includes AWD as an option.

An efficient 2.9L turbo-diesel engine is being developed for Cadillac CTS models primarily in European and Asian markets. It is a compact, dual overhead cam, four-valve V-6 engine from GM's family of diesel engines that delivers optimal fuel economy as well as reduced emissions and noise. The engine is rated at 184 kW (250 hp).