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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

2016 Cadillac CT6 has arrived

We have known for a while that the 2015 New York Auto Show would mark the debut of Cadillac's latest flagship model. But after months of waiting as Caddy slowly revealed details, the 2016 Cadillac CT6 has finally arrived. The sedan is a technological tour de force for the brand and inaugurates a long list of new technologies. The CT6 will begin production at the Detroit-Hamtramck Assembly plant in late 2015 and will go on sale with three engine options. Caddy won't release final figures yet, but based on preliminary numbers, we know the base 2.0-liter turbocharged four-cylinder will make 265 horsepower. Stepping up to the newly revised 3.6-liter V6 will net buyers an estimated 335 hp, and finally there will be the 3.0-liter twin-turbo V6 with an output of around 400 hp. All of these engines will be mated to eight-speed automatic transmissions, and six-cylinder models will get standard all-wheel drive that will be able to constantly vary the power sent to the front wheels. Carrying those powertrains is the new, aluminum-intensive Omega architecture. In addition to the lightweight metal making up the platform, the entire exterior also uses it to provide an estimated curb weight of less than 3,700 pounds. The decision to shed mass makes the CT6 a featherweight in its class – for comparison, the lightest, six-cylinder Audi A8 weighs 4,365 pounds. The sedan rides on a 122.4-inch wheelbase and is 204 inches long. That makes the Cadillac about 1.3 inches shorter than the smallest BMW 7 Series, but the Caddy is projected to tip the scales at less than both the big Bimmer and even the 5 Series, too. Cadillac wants the CT6 to be a luxury sedan that drivers can enjoy. In addition to the low weight, there's an available Active Chassis System throughout the range with rear-wheel steering and Magnetic Ride Control. When combined with the all-wheel-drive system, it means every corner of the car is both driving and steering the vehicle. Inside, the CT6 offers a ton of tech and luxury. Drivers are held in massaging, leather seats, and rear passengers also get adjustable chairs that are heated and cooled. Quad-zone climate controls keep everyone comfortable. Plus, in addition to the 34-speaker Bose audio system and streaming rearview mirror, there are features like a 10.2-inch CUE infotainment system with a capacitive touchscreen and console-mounted touchpad. The display also shows a 360-degree view outside and can even record video when the security system is activated.

GM to build $1.3 billion Cadillac plant in China

General Motors has gotten approval to build a $1.3 billion manufacturing facility for its Cadillac brand in China. China's National Development and Reform Commission signed off on plans for GM to build the plant in the country's Shanghai's Jinqiao zone; construction is expected to begin in June of this year. According to a Bloomberg report, the plant will have an annual production capacity of 150,000 units.
No surprise here, but Cadillac would like to sell a lot more cars in the plush Chinese luxury market. The brand moved only 30,010 cars in China last year, compared with 400k for Audi, and about 330k for BMW. With Cadillac already telling us that it would be moving production of its XTS sedan to China - a production decision that saves having to pay 25-percent import tariffs - approval of the factory is a critical win for the company.
In fact, according to earlier comments by GM China president Bob Socia, it's at least conceivable that Chinese-built Cadillacs could be shipped back to the US for sale. The brave new world of globalization, getting stranger by the minute.