DETROIT (Reuters) – General Motors Co Chief Executive Mary Barra’s strategy of rebuilding the Cadillac brand has run into twin roadblocks: the carmaker can’t persuade enough American sedan buyers to switch from foreign competitors such as BMW or Mercedes, and it can’t make enough of its Escalade SUVs to satisfy domestic demand.
Even though chrome-bedecked Escalades retailing for more than $100,000 each are rolling every day out of an Arlington, Texas, factory that’s been working weekend overtime for months, Cadillac still can’t keep more than a few weeks’ worth of the big SUVs in stock. By contrast, its dealers are offering discounts of thousands of dollars on the ATS sedan, intended to compete with the BMW 3 series, and on the CTS sedan, meant to rival the Mercedes E-class.
DETROIT, Feb 3 (Reuters) – AutoNation Inc, the
largest U.S. auto dealer group, on Tuesday posted a
higher-than-expected quarterly profit due to strong profit
margins from new and used vehicle sales, driving its shares up
nearly 8 percent.
“While unit volume and revenues were strong across the
board, new and used margin performance was especially
surprising,” Morgan Stanley analyst Ravi Shanker said in a
DETROIT, Jan 29 (Reuters) – Ford Motor Co on Thursday
said it would keep relying on North America for its profit this
year as the No. 2 U.S. automaker signaled that losses in Europe
would be more than previously forecast.
Ford had previously estimated losses from Europe at about
$250 million in 2015. On Thursday, however, it backed away from
that forecast, saying the loss would narrow from $1 billion in
2014 but would be wider than previously thought.
DETROIT, Jan 21 (Reuters) – Volvo Cars on Wednesday named a
new head of North America as the Swedish auto brand tries to
reverse lagging sales in a growing U.S. market.
Lex Kerssemakers, 55, was named senior vice president of the
Americas as well as president and CEO of Volvo Cars of North
America. He will report to Volvo CEO Hakan Samuelsson.
Kerssemakers is currently senior vice president for product
strategy and vehicle line management.
DETROIT, Jan 14 (Reuters) – General Motors Co on
Wednesday forecast that its 2015 operating profit will increase
from last year due mostly to growth in its two largest auto
markets, China and the United States.
As it moves past a year marred by massive recalls from a
defective ignition switch linked to at least 45 deaths, GM said
modest growth in global vehicle sales this year would help the
No. 1 U.S. automaker post improved results in all of its
regions. It also said it remained on track for 2016 targets,
including 10 percent profit margins in North America and a
return to profits in Europe.