To turn around its Cadillac fortunes, General Motors (
) 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.
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.
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.
See full analysis for General Motors
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. 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.
We currently have a
Trefis price estimate of $25.40 for General Motors's
, which is in-line with the current market price.
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