General Motors Company (GM), Ford Motor Company (F): Is Cadillac Really Back?

Why it matters?
The reason all this matters to investors is that a successful luxury line is very important to automakers profits and margins. The vehicles represent incremental sales and revenues because, at higher transaction prices, the vehicles don’t compete with main brands like Ford Motor Company (NYSE:F) or Chevrolet, and are packed full of premium tech options which is good for top- and bottom-line growth. On top of all that, the world’s largest and fastest-growing automotive market, China – where General Motors Company (NYSE:GM) has a solid market position – is expected to grow its luxury appetite at a good pace throughout the decade.

General Motors Company (NYSE:GM) seems well positioned to take advantage of growth opportunities for its luxury lineup. A few years ago Cadillac was essentially a three-vehicle lineup, but now looks to grow to as many as 10 models in 2015. General Motors Company (NYSE:GM)’s next generation CTS hits the showrooms this fall and the Escalade arrives later with its first redesign in eight years. Cadillac is also developing a seven-passenger crossover as well as a smaller crossover, and redesigning its SRX. It also plans to introduce the LTS which will compete with the BMW 7 series and Mercedes-Benz S class – scheduled to launch in 2015.

Bottom line
Digging into the numbers provided me with a solid and often forgotten investing lesson – always dig deeper, and don’t start research with a biased idea. In reality, Cadillac isn’t quite back yet, there’s a long road ahead of the company, but I believe it will get there. It looks to be a good ride for investors if Cadillac continues to replicate its recent product quality and performance – at least that part of Cadillac is back, and that’s what Ferguson meant.

The article Is Cadillac Really Back? originally appeared on Fool.com and is written by Daniel Miller.

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

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