MotleyFool: Cadillac Doing Some Heavy Lifting at GM

[Bruce Nunnally]

Cadillac Is Doing Some Heavy Lifting at GM

For years, General Motors (NYSE: GM ) allowed its luxury Cadillac brand to languish with uninspiring designs while new competitors emerged and won their own followings. Back in 1978, Cadillac sold around 350,000 cars, but the sales pace has declined dramatically since then. Last year, Cadillac sold just under 150,000 vehicles in the U.S., slightly fewer than it sold in 2011 and slightly more than it sold in 2010. That placed it fifth domestically, behind BMW, Mercedes, Toyota Motor's (NYSE: TM ) Lexus brand, and Honda Motor's (NYSE: HMC ) Acura.

Meanwhile, international sales have been almost nonexistent, leaving Cadillac's worldwide sales total around 200,000. By contrast, global luxury segment leaders BMW, Audi, and Mercedes each sold more than 1.3 million vehicles in 2012. However, GM is finally making an aggressive push to grow the Cadillac brand by entering new market segments while updating the designs of existing products. Additionally, GM is attacking the fast-growing luxury car market in China. These moves are already starting to pay off, and continued progress at Cadillac will be incredibly beneficial for GM's financial results.

Read more: http://www.fool.com/investing/general/2013/05/06/cadillac-is-doing-some-heavy-lifting-at-gm.aspx