Eight long years
GM has consistently lost market share in the U.S., which it personally blames on its old vehicle lineups. Since coming out of bankruptcy, it’s taken longer to refresh designs, but this year it begins an 18 month overhaul. GM’s message, to consumers and investors alike, is simple: Give us 18 months to prove that we’re producing the best vehicles in Detroit. It’s certainly talking the talk, and the NAIAS show provides the perfect time to start its portfolio refresh.
GM is using its muscle to produce jaw-dropping responses. Fans have been waiting eight years for the seventh-generation Corvette, and it doesn’t disappoint. It’s sleek design and features are aimed to please more than just fans; it’s intended to re-spark the dull Chevrolet brand image. “We want to reinforce the fact that it is a halo product and tie it closely to the Chevrolet brand,” said Chris Perry, Chevy vice president for marketing.
Take a look
The Corvette represented less than 1% of Chevrolet’s sales last year; it won’t help win back market share with its sales alone. However, its value as an iconic brand image will be essential to attracting attention to Chevrolet’s portfolio turnaround over the next 18 months.
Bottom line
Investors in either company will have a lot to watch over the next few years. GM’s complete overhaul will have its competitors on edge, and paying close attention. The battle for the most profitable market in the U.S., trucks, is also heating up. GM is releasing the next generation Silverado mid-2013, while Ford tries its best to convince consumers to wait for its new truck to hit the showrooms in 2014. A clear No. 1 in Detroit could be decided over the next five years, and while a rising tide raises all boats, those who invest in the better-positioned company will be well rewarded.
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The article These 2 Vehicles Mean a Lot to Ford and GM originally appeared on Fool.com.
Daniel Miller owns shares of Ford. Follow him on Twitter @StreetSmartFool. The Motley Fool recommends Ford and General Motors. The Motley Fool owns shares of Ford. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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