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Despite strong profits, GM still fighting flat market share

Looking at the progress General Motors has made since it entered bankruptcy, it's easy to forget that the company still has a long way to go before it's the juggernaut it once was. A recent report from Reuters points out that, while GM is making money, it isn't making any gains in terms of US market share. Quite the opposite, really. Consider this factoid: In 1963, nearly half of the cars sold in the United States were from Chevrolet, Cadillac, Buick, GMC or Pontiac. Now, the company's US market share is stagnant at 17.9 percent. That same number is half of just Chevy's 1963 market share. This is all despite GM going on a binge replacing or updating its models. "Market share increases are not instantaneous," Mark Reuss told Reuters at the 2014 Detroit Auto Show. "We've got a lot of baggage. Don't underestimate what people though of us, or these brands, through these hardships and 30 years." The reasons for the stagnant market share are numerous. Reuters points out that retooling of factories and a focus on limiting incentives are both good things for profit, but not necessarily for market share. There's also the troubling turnover of the brand's marketing department. These issues don't change the fact that Chevrolet has lost 1.4 percent of its market share in two years, and that Cadillac - arguably GM's most improved brand overall - has lost 1.2 percent in the same period. Part of that can be blamed on GM's avoidance of fleet sales in favor of more profitable customer sales. "Our focus has really been on retail and that's where we've got the growth," said Alan Batey, GM's interim global marketing boss. "We want to grow GM and that means growing market share and profits, but it's not at all costs," Reuss said. News Source: ReutersImage Credit: paul bica - Flickr CC 2.0 Earnings/Financials Buick Cadillac GM GMC sales profits

Cadillac exec realizes ELR pricing was stupid high

At least one Cadillac exec has finally started to come to terms with something we knew all along: the initial $75,000 price for the ELR plug-in hybrid was way too high. The bad decision in part led to the model selling just over 1,000 units last year. Company marketing boss Uwe Ellinghaus recently gave an interview to Bloomberg where he discussed what went wrong. "The MSRP was, indeed, a mouthful," Ellinghaus said to Bloomberg. "We overestimated that customers would realize our competitors were naked at that price." People balked at the ELR's price from the very start, and dealers were receiving $5,000 at one point just for getting customers to test drive the PHEV. Later, some incentives for buyers were as high as $14,000. Cadillac planners saw a conundrum when it came to the ELR's price. Too low of a figure was thought to bring the model close to the Chevrolet Volt, and $75,000 was also believed to signal Caddy's PHEV as something special. "We just wanted to make this a statement for the brand of how progressive we are," Ellinghaus said to Bloomberg. Cadillac is now working to rehabilitate the ELR's reputation with a host of updates for 2016. Buyers get a 25-percent boost in powertrain output, additional standard features, and the whole package comes with a $9,000 drop in price. The tweaks should help the luxurious PHEV make a better second impression. Related Video:

2016 Cadillac ATS-V First Drive [w/video]

If you get hot and bothered for hot-rodded sedans and coupes, you probably know that Germans have long dominated that cutthroat scene. For years, the Audi RS/BMW M/Mercedes-AMG triumvirate has ruled the microcosm of grunty, mid-level luxury cars. But a funny thing happened when Cadillac's first V car hit the market in 2004. Since the CTS-V crashed the high horsepower party, German tuning houses started thinking less about the "Daddy's Caddy" stereotypes and more about the next imminent threat – in this case, the inevitable high-horsepower spinoff of the smaller, nimbler Cadillac ATS. The standard ATS' defense against the German triad hasn't been triumphant so far (GM's Michigan plant was idled for three weeks in 2014 due to excess inventory), but the souped-up 2016 Cadillac ATS-V presents a fresh bid to put the Teutonic competition on alert. The ATS-V's flared bodywork and quad exhaust pipes offer bits of visual shock and awe, but significant hardware upgrades back up the go-fast looks. Front and center is a twin-turbocharged, 3.6-liter V6 with reworked internals including a charge-air cooler, titanium connecting rods, and titanium-aluminide turbines. The new engine produces 464 horsepower and 445 pound-feet of torque, up a staggering 262 hp and 173 lb-ft compared to a base, four-cylinder ATS. Those output figures eclipse the BMW M3/M4 (425 hp, 406 lb-ft) and Audi RS5 (450 hp, 317 lb-ft), but lag slightly behind the V8-powered Mercedes-AMG C63 (476 hp, 479 lb-ft), and more so the C63 S (503 hp, 516 lb-ft). The chassis benefits from several structural braces, most notably a shear panel intended to boost front-end stiffness. Extra poundage from the add-ons are minimized through lighter-weight materials – in the case of the shear panel, stamped aluminum. Cadillac says though it intended to make the ATS the quickest car in its segment (stated 0-60 mph times between 3.8 and 3.9 second virtually match the BMW M4 and Mercedes-AMG C63 S' 3.9 figure), the development team says they also focused on subjective qualities like turn-in quickness and steering response. As such, toe links have been replaced with ball joints, mounts have been retuned, and reworked magnetic damping offer greater responsiveness. Six suspension bushings have been stiffened and ten have been completely redesigned, and the Performance Traction Management system that tames beasts like the Corvette Z06 and Camaro ZL1 also helps lay down power in the ATS-V.