General Motors Company (GM): Will Big Sales Mean Big Profits?

A strong showing as Cadillac gathers steam
Looking beyond pickups, GM had a good month on several other fronts. Cadillac sales were up 20% in February, powered in part by the growing success of its hot ATS sedan. February was the best month yet for the ATS, as it continues to gain traction amid glowing reviews. The compact luxury sedan, a strong entry aimed directly at the class-standard BMW 3-Series, has quickly risen to become the second-best-selling Cadillac after the popular SRX crossover SUV.

While SRX sales were down, most of GM’s other crossovers posted solid gains, just as you’d expect in a snowy February. Sales of the Chevy Equinox were up 15.7%, and the GMC Terrain posted a 21.2% gain. And interest in the Chevy Volt continued to build, as sales of the innovative hybrid were up nearly 59% in February.

But the story elsewhere was mixed, as Chevy’s bread-and-butter Malibu, Cruze, and Sonic all posted sales declines — though the weather in many parts of the country (unseasonably warm a year ago, snowy last month) may have affected year-over-year comparisons. Still, it’s clear that GM needs more new products.

Fortunately, more new products are coming soon.

Next up: New sedans for Cadillac and Buick
GM’s ongoing new-product offensive will continue at the New York Auto Show later in March, where GM has said it will show three new premium sedans: the Buick LaCrosse and Regal, and the important all-new Cadillac CTS.

The Cadillac in particular will be worth watching closely. Rebuilding the Cadillac brand is key to GM’s global ambitions, and the CTS — which will compete directly with the BMW 5-Series and Lexus ES sedans — needs to be a “no excuses” top-notch competitor when it makes its debut. Will it be? Watch this space.

The article GM: Will Big Sales Mean Big Profits? originally appeared on Fool.com.

Fool contributor John Rosevear owns shares of General Motors and Ford. Follow him on Twitter at @jrosevear. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford and General Motors.

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