Cadillac's problem for Europe is that the CTS is as big as a Mercedes E-class or BMW 5-series. They need something smaller which can compete in what are more tightly defined vehicle segments which are regimented based on size. The BLS is still six and eight inches longer than theh Mercedes C-class and BMW 3-series, respectively, but at least it's still smaller than the next step up the model ladder.
What's potentially really great for Cadillac is the BLS allows the CTS and STS to be positioned say, a half-step below the E-class/5-series and S-class/7-series. And since the cars are built here in America and paid for in dollars, selling them in euros gives Caddy a nice bump in profit due to the current state of exchange rates.