It is an upgraded version of the Cadillac XLR. It was formally introduced at the 2005 New York International Auto Show, but launched in the United States in early 2006.

The XLR-V is available only in its Base trim. It comes with a powertrain warranty for five years or 100,000 miles.

This roadster convertible gives a tough competition to the likes of Mercedes-Benz SL63, BMW Z4, Chevrolet Corvette, Jaguar XK Series, Porsche Boxster, and Porsche Cayman.

The engine is linked to a standard 6-speed electronically-controlled automatic transmission, with overdrive, a Performance Algorithm Lift-foot, and Driver Shift Control. The transmission also features a torque converter clutch and Performance Algorithm Shifting.

Its front fascia is adorned by a body-color front bumper with integrated fog lamps, a huge egg-crate grille, and a steerable adaptive forward lighting system, which includes bi-functional High-Intensity Discharge (HID) headlamps with washers and Twilight Sentinel.

These HID headlamps have some sensors, which calculate the speed and the steering-wheel angle using internal software algorithms. Based on these careful mathematical determinations, the headlamps are pivoted at an angle to enhance illumination in the headed direction when turning.

The XLR-V also features LED backup lamps, LED high-mounted stop/brake lamp, and LED tail lamps. It also comes standard with exterior rear-view heated mirrors, which are power-adjustable and feature driver-side auto-dimming with memory. It features a power retractable hardtop roof, which can be retracted to convert the XLR-V from a coupe to convertible and vice-versa. Exhaust outlets with dual chrome-plated tips give a distinct look to its rear.

The XLR-V wears standard 19-inch Sterling Silver-painted aluminum wheels with P235/45 R19 front and P255/40 R19 rear extended mobility tires.

The XLR-V offers seating for up to two passengers. It comes standard with front bucket seats with leather seating surfaces, 8-way power driver and passenger seat adjusters, adjustable upper and lower lumbar control, easy-exit seat position, and cooled as well as heated seat cushions and seatbacks. The convertible also comes with programmable door locks with lockout protection, and power windows.

It features a standard dual-zone automatic climate control with individual climate settings for driver and right-front passenger, and an air-filtration system with pollen filter.

The XLR-V features a leather-wrapped power steering wheel, which includes controls for audio, voice recognition, and cruise controls. The XLR-V comes with a tilt and telescopic steering column.

The XLR-V prides itself on an electronic-analog instrumentation designed by world-renowned Italian jeweler Bvlgari. The analog instrumentation comprises of elegant white-on-black numerals and graphics, which make for easy reading as well as good looks.

A Driver Information System, standard on the XLR-V, features 20-character displays in five languages (English, French, German, Italian and Spanish).

The XLR-V has auto-dimming inside rear-view mirrors with OnStar controls. It also boasts of Rainsense windshield wipers with automatic actuation, which detect moisture on the windshield and automatically optimize the cadence of the blades to the rain conditions.

A rear window electric defogger with front and side window outlets for the driver and right-front passenger is also standard on the XLR-V.

A Memory Package, which recalls two driver "presets" for power driver seat, outside mirrors with parallel park assist, steering column, climate control, audio system, and Driver Information Center, is also standard on the XLR-V.

It also offers the convenience of a keyless entry, which includes two remote transmitters that enable automatic door unlock and open by touching the door switch.

For entertainment while cruising, the XLR-V comes equipped with an AM/FM stereo with a 6-disc in-dash CD changer and a DVD-based navigation, a Radio Data System (RDS), TheftLock, weather band, a 6.5-inch LCD color display touch-screen, voice recognition, and a Bose premium 9-speaker system. Also standard on the XLR-V is an XM Satellite Radio.

The 6-speed electronically-controlled automatic transmission shifts smoothly and seamlessly.The XLR-V is steered by a large magnetically-controlled speed sensitive power-assisted rack-and-pinion steering system. The steering is tight, and offers precise responses, but may feel heavy at times.

It rides on a performance-tuned independent suspension, which includes short/long arm double wishbone, cast aluminum upper and lower control arms, transverse-mounted composite leaf spring and an anti-roll bar. This stiff suspension system dissolves the irregularities in roads and offers a sporty ride, which suits the XLR-V’s character to a ‘T’.

Heavy-duty, high-performance brake linings, with dual piston front calipers and single-piston rear calipers offer the XLR-V with a forceful stopping power in short stopping distances. It also features a 4-channel Anti-lock Braking System (ABS), which prevents locking-up of wheels during hard braking and prevents the car from losing traction on-road.

The XLR-V also benefits from an all-speed traction control system called Magnetic Ride Control, which comprises of a dual-mode computer-controlled active system with adjustable shock absorbers and a StabiliTrak, which is a computer-controlled, 4-channel, stability control system, and features four driver-selectable modes.

An ultrasonic Rear Parking Assist with rear-view LED display and audible warning is also standard on the XLR-V. With all these features, the XLR-V delivers a smooth ride, agile handling, and a responsive steering.

Also standard is an all-speed traction control system, a Magnetic Ride Control, a StabiliTrak, and an ABS.