GM is beginning to tackle one of their biggest problems — refreshing the industry’s oldest vehicle lineup. If July is any indicator, the refresh is going to have a very positive effect, as 90% of the lineup is refreshed, replaced, or redesigned by 2016.
“The difference between good sales and great sales in a slow-growth economy is how many new products you have to offer, and we are starting to hit our sweet spot,” Kurt McNeil, head of U.S. sales operations said, according to Automotive News.
There are some very encouraging signs for General Motors Company (NYSE:GM) investors in its second quarter and July sales reports. Those include Cadillac having its most improved year since 1976, as well as redesigned vehicles like the 2014 Impala bouncing back very well in sales. Let’s not forget that the newly designed Silverado and Sierra full-size pickups, which bring in a majority of GM’s profit in North America, are starting to sell extremely well.
All the good stuff aside, GM still has a lot of work to do on its bottom line. It needs to continue consolidating platforms, create economies of scale, and work to improve its operating margin. GM’s got a lot to work with from its top-line sales and future growth from new vehicles, but if GM wants to see its share price increase, it will be from fixing its bottom line going forward — and I think it can.
The article GM Shines In July Sales Report 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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