GM Plans Turn Around For Cadillac And 13 New Models In ’13

GM: General Motors logo
General Motors

To turn around its Cadillac fortunes, General Motors (NYSE:GM) has appointed Robert Ferguson for the newly created position of vice president, Cadillac global. He will be responsible for marketing, brand management and advertising for the brand and will report directly to CEO Dan Akerson. Ferguson was previously lobbying for the automaker on Capitol Hill. Under him, GM plans to bolster Cadillac’s brand by creating a distinct brand entity rather than just being a part of GM. Cadillac was the market leader in the luxury market in the U.S. back in 1997, but its German counterparts have since taken over. [1]

Big Plans for Cadillac

GM plans to double Cadillac sales in the next two to three years with the help of new introductions and model refreshments. The automaker has already rolled out a new vehicle ATS to compete directly against BMW 3 series and Audi A4. The average age of an entry level luxury car owner has gone down and younger customers prefer the more sporty and compact cars such as the 3 series or the A4 as opposed to the heavier and bulkier CTS. Cadillac’s entire model line-up should be refreshed by 2015.

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The competition in the entry level luxury car segment is heating up with Mercedes and Lincoln having already launched 2013 versions of C-Class and MKZ sedan, respectively. Again, creating more sporty versions of the existing models to appeal to the younger lot remains the focus.

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Reinventing its brands through vehicle introductions and model upgrades has been one of the biggest reasons responsible for GM’s turnaround. At the same time, the new models help the company generate higher revenue per car since old models often have to be sold at a discount to lure customers.

13 New Chevys in 2013

Chevrolet will unveil 13 new Chevy models in 2013 as part of its strategy to expand and upgrade its existing line-up to broaden customer choices and boost sales. Part of its plans are to introduce a redesigned Impala, a diesel version of its Cruze car, and an electric Spark. [2] A new Chevrolet Silverado will also be released next year. Silverado sales have been flat through September this year mainly because of weak demand for pickup trucks due to high gas prices. GM has done well in the passenger car segment with sales up 10% in the first nine months of the year, helped by strong performances from Cruze and Impala. [3]

We currently have a Trefis price estimate of $25.40 for General Motors’s stock, which is in-line with the current market price.

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  1. GM names Cadillac global brand chief, October 9, 2012, []
  2. GM to Sell 13 New, Redesigned Chevys in 2013, October 11, 2012, []
  3. U.S. auto sales, []