General Motors and Ford Lead a U.S. Auto Revival
General Motors’s (NYSE:GM) sales have been spiking recently thanks to the Cadillac division. The Cadillac ATS model, which costs $33,095, is the reason for the 49 percent increase in sales last month for the company’s luxury line.
The increase in sales was even greater than the 37 percent increase that had been predicted by the researcher Edmunds.com. The ATS was the driving factor behind the success of this spike in sales according to an auto analyst with LMC Automotive.
This increase in sales is an essential part of the plan for Cadillac because CEO Dan Akerson’s goal is to boost profit margins by 10 percent by the middle of the decade. This is up from the 7.4 percent it has been at over the last three years.
While GM has experienced a surge in sales, Ford (NYSE:F) has also taken steps to improve its position by coming out with the Ford Flex. The Flex “somehow manages to combine elements from boxy old station wagons, Range Rovers and Minis, and stirs the design mix pretty gracefully,” according to The Detroit News.
Additionally, the Flex is an interesting produce because it has managed to attract buyers who would never even thought about buying a Ford before. Additionally, no other Ford model has as high of a buyer-retention rate.
The Flex is a big model that has been getting a lot of attention because it feels expansive like a full-size SUV and has a classy leather interior. This has been a great choice for Ford, and has attracted an eclectic mix of buyers.
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