Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Roadblocks Ahead Of General Motors Company (GM) In Rebuilding The ‘Cadillac’ Brand

General Motors Company (NYSE:GM)’s Cadillac was a very successful brand in United States. But over the years it has lost its hold in the market. General Motors Company (NYSE:GM)’s CEO Mary Barra has decided that she would attempt to rebuild the ‘Cadillac’ brand within US, but this had to overcome two roadblocks which the auto maker is facing now. A ‘Business Standard’ article discuss about General Motors Company (NYSE:GM)’s Cadillac brand and the problems the company had to face in coming days to rebuild this brand.

General Motors GM Electric Cars Cadillac

The two major roadblocks that General Motors Company (NYSE:GM) had to face in rebuilding ‘Cadillac’ brand are, push the American buyers to buy the leftover ATS and CTS Sedans from 2014 and make more Escalade SUV to satisfy the demand. Cadillac ATS and CTS sedans were originally launched to compete against the likes of foreign luxury car makers BMW and Mercedes, but both these sedans did not get much attention from the buyers. So the company had to sell the leftovers from 2014 by offering huge discounts to buyers and dealers.

Some reports suggest that Brad Brotherton, a dealer is offering $12000 and $17500 discounts on ATS and CTS Sedans respectively in Washington.

“Cadillac made a commitment to relieve dealer inventories by incentivizing. Dealers had been asking for that for a long time,” Brotherton was quoted as saying.

Did General Motors Company (NYSE:GM) made a mistake by directly competing against the likes of luxury car makers like BMW and Mercedes, which were more preferred in luxury cars sector over Cadillac by American buyers? Some people feel that the Cadillac ATS and CTS were overpriced and General Motors Company (NYSE:GM) has over produced them as well, which left them back in a situation to clear the inventories.

General Motors Company (NYSE:GM) was facing this issue with Cadillac for over a year and they have even shut down their manufacturing facility at Michigan for 6 weeks. Post this, the company decided to manufacture ATS and CTS Sedans in this facility in just one shift.

On the contrary, General Motors Company (NYSE:GM)’s Cadillac Escalade SUV is pouring in a lot of cash to the company. The sales of this SUV went up by 149% Year-Over-Year. This increasing SUV has compensated for sales drop of 8% and 24% for ATS and CTS Sedans respectively. Overall Cadillac sales went up by 2% Year-Over-Year during January. General Motors Company (NYSE:GM) is also not keeping up with the demand for Escalade SUV.

Meanwhile reports suggest that General Motors Company (NYSE:GM) has cleared more than 90% of the ATS and CTS Sedan leftovers from 2014.

Will General Motors Company (NYSE:GM) do something to revive the Cadillac Sedan sales and meet the overwhelming demand for Escalade SUV?

Disclosure: None

Warren Buffett and BillionairesFree Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!