General Motors (NYSE:GM)’s Cadillac in Turbulent Waters

General Motors Co. (NYSE:GM) is not doing well in the current fiscal year. The company’s Cadillac division has failed to generate impressive sales figures, year after year. These figures have enabled the company to lag behind against its German competitors. The company has put a revised agenda on the table. According to the latest revelations, the Cadillac team wants to manufacture a new line of high performance cars in order to reverse the current situation, the company seems to have landed in. these automobiles are expected to come into the market in the current year and the next. The company has put a lot of faith into this strategy and has no alternative Plan B that may put it on the track to find its lost glory.

The latest in the Cadillac crew is the ATS-V, which is expected to be available in 2016. The ATS-V is a simpler modification of the CTS-V that couldn’t gather enough customers, as it narrowed the consumer audience to drivers that were experts at handling the powerful car that it was. In order to reverse this failure, Cadillac came with a simpler design for the former; the CTS V sport. However, this seems to have confused potential buyers even more, as it is hard to point out how the two models are different.

The ATS-V might end up with a similar fate, if Cadillac has failed to keep these factors in mind. There is a very limited class of expert users, and keeping a focus on that market is bound to restrict sales and revenue. In today’s turbulent market, automobile models that are found harder to drive are bound to make it harder to sell. Cadillac seems to be struggling with setting its place in the market. With the current sales dipping 4.4% from January to October for the current fiscal year and a mere per unit sale figure of 141,452; the brand needs to reverse its strategy.

Cadillac will find it quite a challenge to unseat mammoth rivals such as BMW, Mercedes and Audi. These brands have a huge loyal fan following and are masters in the art of creating and presenting super cars every year. They are known to bring revolutionary models and concepts every year. This year will not be any different, with the three showcasing at the L.S. Auto Show.

The German automobile brands have a lot of influence when it comes to releasing new models. Their annual sales always seem to exceed the previous years’ trends. For the first ten months of the current financial year, the Mercedes sales have gone up 7.5%, with 281,728 units. BMW sales have seen a hike of 11.3% to 267,193 units, for the same period, while Audi’s went up 14.7 to 146,133.

Cadillac has something to appear with in the illustrious L.A. Auto Show. But a single car entry might not make an impact, as the rival companies have several to showcase at the event. The company will find it challenging to get noticed.