General Motors Company (NYSE:GM)’s luxury brand, Cadillac, brought in a 49% sales increase last month driven by the ATS model, which has been a huge hit with consumers and critics alike. This year at the Detroit Auto Show the ATS was named “Car of the Year” and consumers have been buying it up. Similar to its strategy with Chevy, Cadillac is rolling out 10 new or refreshed models by mid-decade and plans to follow the success of the ATS.
Top and bottom lines
GM is essentially wiping the dust off of its entire vehicle portfolio; if it’s successful it could be the catalyst could send the stock price soaring. Look for GM’s refreshed vehicles to increase market share and sales numbers as the vehicles roll out of production.
When it comes to the bottom line for investors, General Motors Company (NYSE:GM) will have to continue to improve its operational efficiencies the way its rival Ford has done. CEO Dan Akerson said the goal is to boost operating margins in North America up to 10% by mid-decade. That’s a high margin for automakers, yet a very real possibility if GM continues success with its high-margin Cadillac lineup and full-size trucks.
Like its newer vehicles, I believe GM is a refreshed company. I definitely think GM is a stock to buy now.
The article General Motors Is a Stock to Buy Now originally appeared on Fool.com is written by Daniel Miller.
Motley 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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