General Motors Company (GM), Ford Motor Company (F): Cadillac’s 2014 CTS Looks to Impress the World

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Interior
All the CTS models will be equipped with Cadillac’s prized “CUE” system for connectivity, featuring a large 8-inch touchscreen. Here’s a tidbit that was music to my ears: The CTS will also come with a 13-speaker Bose premium audio system with HD radio capability.


Cadillac’s 2014 CTS. Photo: General Motors.

Cadillac had me at “Bose system,” but here’s a list of other CTS interior features, according to a General Motors Company (NYSE:GM) press release:

  • Cadillac’s first 20-way adjustable front seats.
  • A motorized cup-holder lid in the center console.
  • Heated and cooled (ventilated) front seats and heated steering wheel.
  • Electronically locking glove box.
  • Electronic park brake.
  • Adaptive remote start feature that also activates the climate control system.

In addition to those minor features, it has a plethora of safety features and options. For example, the 2014 will be the first Cadillac to offer “Automatic Parking Assist,” similar to Ford Motor Company (NYSE:F)‘s feature that parks itself in parallel spaces. It also offers a “Driver Awareness Package” that has vibrating pulses in the driver’s seat to bring attention to an imminent collision — a patented feature.

Investing takeaway
Luxury lines bring in a high transaction price and fatter margins than standard vehicles, and it’s important to be able to step your loyal consumers up as their purchasing power grows over time. One complaint from General Motors Company (NYSE:GM)investors is that the company isn’t nearly as profitable as it should be for the globe’s second leading automaker in sales — and that looks to change. For investors, General Motors Company (NYSE:GM) is an intriguing opportunity because it’s years behind Ford Motor Company (NYSE:F) in operating efficiencies and has a lot of room to run over the next few years in terms of profitability.

These two crosstown rivals have much to learn from each other. If Ford Motor Company (NYSE:F) can take notes from Cadillac’s success and apply it to its Lincoln brand, it will be a huge step for growing top-line revenues. If GM can apply Ford Motor Company (NYSE:F)’s efficient global platform and run its plants and operations at a high percentage of capacity, as Ford Motor Company (NYSE:F) does, it will become immensely more profitable. If a hypothetical automaker had GM’s top-line success, in combination with Ford Motor Company (NYSE:F)’s bottom-line success, the result would easily be the best automaker on the globe. Time will tell which company learns its lesson first, but both automakers present us with an incredible investment opportunity as automotive sales rebound in the U.S. and around the world.

The article Cadillac’s 2014 CTS Looks to Impress the World originally appeared on Fool.com.

Fool contributor Daniel Miller owns shares of Ford and General Motors. The Motley Fool recommends Ford and General Motors and owns shares of Ford.

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