New Cadillacs Already Helping GM Bottom Line

The CadillacCadillacUnited States of America, 1902 > present79 models
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ATSCadillac ATS 2.0 Turbo DI...United States of America, 2013 > present14 photos
has barely been on sale a year, and it is already partially responsible for Cadillac sales increasing 49%. Even better, the new buyers are younger than the senior buyers Cadillac had cultivated in recent years, which helps secure Cadillac's future. It is planning 10 new models by 2015, including the just-revealed third generation CTSCadillac CTS 3United States of America, 2013 > present19 versions
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. 

Cadillac is hoping than the ATS can be a Trojan horse for the brand. As the model builds buzz by winning awards like the North American Car of the Year, Cadillac can prove that it is building quality vehicles again. It can then bring out the CTS later this year for a higher price and higher profit margins but still have high quality.

The brand's next step will be work on its SRXCadillac SRX Gen.2United States of America, 2010 > present15 versions
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compact crossover. It was introduced in 2009 as a 2010 model but is already beginning to feel old. The compact crossover might be the fastest developing market segment in the world and having legitimate competition against BMWBMWGermany, 1918 > present87 models
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, AudiAudiGermany, 1909 > present83 models
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, MercedesMercedes-BenzGermany, 1924 > present197 models
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and LexusLexusJapan, 1989 > present26 models
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will be vital. 

"Cadillac makes more money than our average portfolio. As we continue to fill out the lineup in the portfolio and grow Cadillac, that’s going to have a net benefit from a margin perspective," said General MotorsGMUnited States of America, 1998 > present8 models
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North America Chief Financial Officer Chuck Stevens.

The extra sales are having a major effect on GM's stock price. The stock price has gone from a recent low of $27.26 a share on April 4 to 29.70 as of this writing. It is the most the stock has been worth since January 15, 2013, when it hit a high of $30.60 a share.

Cadillac was the top luxury brand in the US for decades until 1998 and currently ranked fifth last year. Through March, it has moved up a spot past AcuraAcuraJapan, 1986 > present24 models
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for fourth place. It wants to retake the crown.

The US auto market is ascendant at the moment. March sales hit 1.45 million cars, the best sales month since 2007, and analysts are already predicting that this could be the best automotive sales year since 1997. 

Source: Bloomberg