The compact luxury car segment is one of the hottest segments, and Cadillac is well aware that the BMW 3-Series is the undisputed benchmark. Cadillac took this into account and set out to beat the 3-Series with the all-new 2013 ATS.

In our video we break down the main differences between the new ATS and 3-Series. On the surface, it seems to be an even match. Both cars weigh around 3,400 pounds and both cars come in rear-wheel and all-wheel-drive configurations.

Both vehicles offer manual transmissions, but the BMW offers an eight-speed automatic while the Cadillac offers only a six-speed automatic, for now. The ATS and 3-Series both offer turbocharged four-cylinders and a six-cylinder engine in some form. The ATS will come with a naturally aspirated four-cylinder, which the 3-Series doesn't offer yet.

While the 3-Series does offer all the in-cabin technology you would expect to find in a luxury sedan, the ATS may be ready to trump it with its new CUE infotainment system. With a large capacitive touch-screen interface and capacitive buttons, the ATS has something akin to an iPad in its dash--something a cut above the BMW's technology.

Pricing hasn't yet been set for the 2013 Cadillac ATS but we predict it will undercut the 3-Series slightly.

For more information make sure you read our driving report for the 2012 BMW 3-Series and our preview of the 2013 Cadillac ATS.