Cadillac, the luxury car brand owned by General Motors (NYSE:GM), plans to double its sales to around 300,000 in the next three years with the help of new introductions and model revamps. In total, Cadillac will introduce 10 new models or vehicle redesigns. The new models include the ATS 2013 as well as the XTS 2013 models, a next generation Escalade, a new CTS sedan and the ELR plug-in electric coupe. 
Cadillac was the market leader in the luxury market in the U.S. back in 1997, but its German counterparts have since taken over. Mercedes has been the top selling luxury brand in the U.S. this year with sales in the first seven months standing at 159,412 units followed by BMW at 147,801 units. Cadillac’s sales are less than half that the market leader’s with 76,229 units. 
New ATS 2013 to Target Entry Level Buyers
Although the CTS was priced similar to the entry level luxury cars offered by other car manufacturers, it was heavier and bigger in size which prompted customers to buy the lighter and more sporty German imports. Thus, Cadillac introduced the ATS which was designed specifically to take on entry level luxury cars such as BMW 3 series, Audi A4 and the Mercedes C-Class. But GM is not the only automaker looking to reinvigorate its luxury brand.
Ford Motors (NYSE:F) is bringing a revamped version of its MKZ sedan this fall. Moreover, Lincoln plans to launch a new car in each of the next four years to expand its portfolio in the U.S. luxury car market.  Recently, Ford also announced that it was looking to roll out its luxury brand Lincoln to China by 2014. Besides this, Ford is expanding capacity and launching compact as well as fuel efficient cars to target the more price conscious customers in China and Asia/Pacific.
At the same time, GM is continuing on its Asian expansion with the latest announcement to build a $150 million plant in Indonesia with an annual capacity of 40,000 vehicles. The plant will commence in 2013. 
We currently have a Trefis price estimate of $24.90 for General Motors’s stock, which is about 10% more than the current market price.Notes:
- Cadillac plans lineup overhaul, August 29, 2012, detroitnews.com [↩]
- Cadillac Aims to Double Its U.S. Sales Volume by 2014, August 28, 2012, wsj.com [↩]
- Cadillac, Lincoln Finally Get Serious Again, August 30, 2012, brandchannel.com [↩]
- General Motors to establish new plant in Indonesia, September 3, 2012, news.xinhuanet.com [↩]