We’ve been hearing for years now that the U.S. domestic auto industry has a problem when it comes to perception in the marketplace. “Consumers just don’t equate products from the U.S. Three as being worth the value printed on their window stickers,” Detroit execs complain. While folks will easily pay top dollar for a Mercedes, BMW or even a MINI, forget about getting them to fork over top-dollar for a Chevy, Ford, Chrysler or even a Cadillac. This fact came crystal clear after spending a week behind the wheel of the 2007 Cadillac XLR-V and having to resuscitate a few people left breathless when told of its $100,000 price tag.

“I would never pay that price for a Cadillac,” one of my trusted friends told me. “There is not one GM product that’s worth a hundred grand,” another gasped. Now I know what the Detroit execs are complaining about.

From the outside, the XLR-V is a stunner. Its stealth fighter-inspired styling caused many to gawk and is in keeping with Cadillac’s modern, cutting-edge theme. The crisp lines and long hood provide a very unique appearance that is unlike anything on the road. Sliding into the cockpit leaves a feeling of emptiness, however, as the quality of the materials is a bit lacking. For example, the switches for the power windows and climate control system feel unworthy of being in this high-end luxury roadster.

Under the hood is where this XLR earns its coveted “V” status via the limited-edition supercharged 4.4-liter Northstar V8, producing 443 hp and mated to a 6-speed automatic transmission with driver shift control. Along with these powertrain changes, the “V” moniker comes complete with a specially-tuned performance suspension, 19-in. aluminum wheels and leather-wrapped interior. The XLR-V’s engine and suspension combination are perfectly tuned and provide substantial credibility to build on Cadillac’s move toward establishing the “V” series along the same line as Mercedes’ AMG and BMW’s M brands.

Still, there’s a lot of work to be done to convince consumers that Cadillac is indeed worthy of being in the same league as Mercedes, BMW or Lexus. Why would anyone pay six-figures for a car that is underpowered compared to the 505-hp 7-liter Chevrolet Corvette Z06 which costs $30,000 less than the XLR despite being built on the same base? I’m still scratching my head over that one.