General Motors Company (GM): Cadillac’s 2013 ATS Has Changed the Game

While the above statements are my opinion, apparently critics agree as the ATS took home the 2013 Detroit Auto Shows “North American Car of the Year” award. It was no small feat either, as it was the first Cadillac to win over the 20 years the award has been presented. Moreover, J.D. Power & Associates named Cadillac second for customer satisfaction, trailing only Lexus in the luxury division. Below is a list of a handful of its interior tech features, according to General Motors Company (NYSE:GM)’s press release.

Bluetooth phone connectivity with voice recognition
USB, auxiliary and SD memory card ports
SiriusXM Satellite Radio with three-month trial subscription
Keyless access and keyless push-button start
Reconfigurable 5.7-inch instrument panel cluster display
Full-color reconfigurable head-up display
Leatherette or leather seating surfaces
7 speaker Bose sound system (standard model)

Investing takeaway
Luxury brands are important to the elite global automakers for a couple of reasons. Firstly, luxury vehicles bring in higher transaction prices and better margins per vehicle. This is especially true as more technology and premium options are available. For example the Cadillac ATS starts at about $33,000 but can quickly surpass $50,000 with options and that brings in a nice bottom line figure for GM.

Secondly, the automotive industry is extremely loyal between brands and models. You’re either a Ford truck guy or a Chevy guy – there’s no grey area. Naturally as consumers grow older and increase their purchasing power, the next step from a basic Chevrolet, Buick, Ford Motor Company (NYSE:F) would be to the luxury level of that same automaker. This is where Cadillac is reaping the rewards while Ford loyalists are leaving for competitor lots because the Lincoln luxury line isn’t up to par, yet.

Bottom line
By the end of the decade General Motors Company (NYSE:GM) expects global luxury volume to increase by nearly three million vehicles while the luxury share of the overall market continues to surge. Thanks to game changing vehicles like the Cadillac ATS, CTS, and XTS, GM is well positioned to drive in higher profits on its vehicles. It’s also positioned well for success in the world’s largest and fastest growing auto market – China. One thing is for sure, Cadillac is back.

The article Cadillac’s 2013 ATS Has Changed the Game originally appeared on and is written by Daniel Miller.

Fool contributor Daniel Miller owns shares of Ford and General Motors. You can follow Daniel on Twitter. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford.

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