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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 shows dealers convertible rendering

Cadillac is getting serious about revitalizing and expanding its lineup, and to that end, a new report claims that brand boss Johan de Nysschen has been showing plans for several new models to the marque's dealer body - among them, a new convertible.
The droptop which Cadillac reportedly showed its dealers in sketch form, would be based on the same platform as the ATS and CTS, those it's unclear to which (if either) of those model lines the new convertible would be added, or whether the design features a canvas or folding hardtop roof. One way or another, it would be the first time Cadillac would offer a convertible since the Corvette-based XLR roadster was discontinued more than five years ago.
Quoting an unnamed brand spokesperson, Cadillac would "like to introduce an open car to the portfolio at some point," however, "it's not likely to be one of the near-term portfolio additions."

Confident new Cadillac marketing boss ready to take on Tesla, BMW

When there's a former BMW executive heading Cadillac's efforts to boost sales of its only plug-in, it's a pretty safe guess that the marketing emphasis won't be on environmental friendliness and tree-hugging tendencies. The General Motors luxury brand has appointed ex-Bimmer executive Uwe Ellinghaus to be its marketing chief late last year, and the German-born Ellinghaus is now saying that he's targeting potential customers of Tesla Motors, in addition to BMW, for potential growth in sales of the Cadillac ELR extended-range plug-in. Appointed to Cadillac's head of marketing last November, Ellinghaus recently told Advertising Age that GM needs to highlight the Cadillac's looks and performance. He complimented Tesla for putting more emphasis on those attributes in the Model S than on its lack of emissions or lack of refueling costs (but Tesla hasn't shied away from highlighting the EV's savings). Ellinghaus says that trying to gear advertising "for people who are tree-huggers and green-wash an entire brand" won't be successful. You don't say. So far, the ELR hasn't made much of a dent in US car sales. Through May, Cadillac, which spent about $280 million on all of its US marketing last year, sold 293 units, whereas Tesla had been approaching the 11,000-unit figure for the Model S. With that in mind, Cadillac may be working on a sportier version of the ELR, as spy shots of a test vehicle from May revealed larger brakes and wheels. You can read our First Drive impressions of the ELR here.