This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

For GM, Help Is on the Way at Cadillac

Stocks in this article: F GM TM

Karl Brauer, CEO of Total Car, recently drove the new ATS, and said that "GM has cracked the code on how to do this stuff.

"It might not quite be the 3-Series in pure driving dynamics, but we're talking shades of grey there," he said. "The difference is small enough that most people wouldn't even notice it. ATS is a hugely important car for GM, (whose) attitude is 'we're taking on the world,' and I think it's going to work."

ATS, in Brauer's view, can lead Cadillac out of the woods. The bigger XTS "is a good step in the process where they will one day have a very serious competitor" for Mercedes S-Class, he said. Escalade, a full-sized luxury SUV, "is plush enough and nice enough that people like it, but it still needs to be put onto a car platform" like the GMC Arcadia.

Meanwhile, Cadillac's CTS midsize luxury sports sedan, "is kind of a 'tweener' between BMW 3-Series and 5-Series," Brauer said. It could, in fact, be called a 4-Series. "It's successful as a tweener, but now it can evolve into something bigger because the ATS is the new 3-Series fighter," he said.

With just five vehicles once ATS arrives, Cadillac is obviously at a disadvantage in a luxury world where Mercedes has 15 vehicles, BMW has 10 and Toyota's (TM - Get Report) Lexus has nine. In June, CTS and the SRX luxury crossover accounted for 77% of Cadillac's volume.

Looking ahead, Libby said "Cadillac's product renaissance" will continue with coupe and wagon versions of the ATS as well as a redesigned CTS and a redesigned Escalade. In 2014, an ATS cabriolet version and a CTS wagon both come to market, followed in 2015 by a new SRX and a redesigned CTS coupe.

Polk estimated the aggressive product introductions will drive Cadillac's share of the U.S. light vehicle market from 1.2% in the first six months of 2012 to 1.3% in 2013 and 1.4% by 2015. In 2015, BMW will have 2.4% of the market, Mercedes-Benz will have 2.1%, Lexus will have 2% and Lincoln will have 0.9%, the firm estimated.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs