The ATS is based on General Motors' Alpha platform and is offered in either rear- or all-wheel drive configurations.

Although Cadillac believed that customers would favor a Mercedes-Benz E-Class-sized sedan at the price of a 3 Series, this assumption was proven to be incorrect.

Cadillac sold the ATS in the United States, Canada, Mexico,[12] Europe,[13] the Middle East,[14] China,[15] Japan,[16] and South Korea.

[19] General Motors invested US$190 million to upgrade the Lansing Grand River Assembly plant for ATS production which created 600 jobs in the result of a second shift of workers.

[22] In August 2009, vice president of design Edward Welburn revealed a full-size styling buck of the ATS alongside the XTS luxury saloon.

[24] The engineers emphasized low weight when developing the ATS and their efforts resulted in a finished vehicle that weighs less than the BMW E46 benchmark.

Under the leadership of Dave Leone, GM engineers created a brand-new platform which was designed to be light and compact, to be capable of handling both rear- and all-wheel drive configurations and to have a near 50/50 weight distribution.

[28] Larry Craig, the ATS Program Engineering Manager says that several iterations were completed until a compromise was made between manufacturability, weight and strength.

[31] Taki Karras, ATS design manager, stated that it was significantly harder to make an entirely new architecture rather than reskinning something else.

[31] Cadillac previewed a two-minute video, which featured an interview with General Motors North America President Mark Reuss, test-driving a pre-production development variant of the ATS, along with the ATS engineers and developers David Leone, Chris Berube, and Kevin Zelenka.

The front suspension is a MacPherson strut, double-pivot set up, using a pair of ball joints and lower control links.

Third-generation Magnetic Ride Control active suspension is optional on the Premium trim level in rear-wheel drive.

Underbody aero shields help redirect wind around and under the car, additionally contributes to decreasing noise in the cabin.

[43] The ATS benefits from advanced materials in multiple locations, which includes ultra high strength steels (UHSS) placed throughout the car,[44] aluminium hood and magnesium engine mounts, a laminated windshield, which is lighter than traditional tempered glass, and door trim panels that are made from natural fibers, which is lighter than the standard plastics.

The 8-inch touchscreen infotainment system which comes standard, features Bluetooth, 3x USB ports, voice recognition, a 12-speaker Bose surround-sound stereo, satellite radio, HD Radio, Android Auto and Apple CarPlay, wireless smart phone charging, and a 4G LTE Wi-Fi hotspot.

[49] The ATS's safety development was based on what GM calls a "control and alert" strategy which makes effective use of advanced technologies to help avoid crashes.

[50] Don Butler, vice president of Cadillac marketing, states that the ATS features systems that can "react faster than humans".

The rear-view camera allows for a view of objects directly behind the ATS, while the dynamic guidelines provide a reference that helps make parking and other maneuvers less complicated.

[53] Two packages are available: the ESS I includes lane departure warning, forward collision alert, rear thorax air bags and Rainsense wipers.

[51] Testing conducted by the United States National Highway Traffic and Safety Administration scored the 2013 and 2014 ATS, in both rear- and all-wheel drive variants, at five stars in frontal crash, side crash and rollover protection, resulting in five stars overall, the highest possible score.

[56] Standard features on the base trim include 17-inch alloy wheels, heated mirrors, automatic headlights, aero grille, cruise control, dual-zone automatic climate control, six-way power front seats with power lumbar, vinyl upholstery, a tilt-and-telescoping steering wheel, General Motor's OnStar system, Bluetooth connectivity, a seven-speaker Bose sound system with satellite radio, and an auxiliary audio jack.

Featuring a more streamlined design, the recently-released ATS Coupe was the first Cadillac model to adopt the new badge, the second being its four-door counterpart.

[76] The ATS offers two new colors, which include Crystal White Tricoat and Dark Adriatic Blue Metallic.

The CUE infotainment system is updated with Text Message Alerts, Siri Eyes Free compatibility and a Teen Driver function which enables owners to set a radio volume limit and establish a speed warning between 40–70 mph (64–113 km/h), among other features.

[82] Prior to the introduction of the ATS-L, standard wheelbase vehicles had been imported to China from GM's Lansing manufacturing facility in Michigan.

[86] Cadillac had made the two-door ATS to compete with the German Mercedes-Benz C-Class Coupe and the BMW 4 Series.

The ATS coupe received 4G LTE connectivity with a WiFi hotspot, CUE interface with Siri Eyes Free, and a Bose stereo with 12 speakers.

GM discontinued the compact executive coupe after the 2019 model year without any replacement planned due to poor sales and the growing popularity of crossovers and SUVs.

[93]The ATS-V features a Brembo high-performance brake system developed to provide durability and capability for track day car performance.

The Cadillac managed to accelerate faster than both German vehicles and was the fastest around Willow Springs International Motorsports Park; it was also the least expensive in the test.