GM to replace 24% of volume annually with new models

Article by Anita Panait, on July 24, 2013

General Motors will overhaul its product line in the United States through 2016 with new and redesigned vehicles at a pace at fast as Ford Motor Co., Bank of America Merrill Lynch said in an industry forecast. On average, GM will replace 24 percent of its sales volume annually with new models, a pace that is over double its average in the past two decades.

John Murphy, report author and analyst, remarked that GM’s management has placed more intense focus on product, as seen on the carmaker’s pace and breadth of the portfolio plans. Murphy expects a commitment on GM’s part to pour in $37.2 billion in liquidity into its products, rather than on dividends or share buybacks.

Murphy wrote in the report that it is becoming a more consistent “product churn that bodes well structurally” for GM. The US carmaker is currently implementing an overhaul of its entire truck lineup, which according to analysts will increase GM's bottom line with billions of dollars.

The US carmaker is eyeing another move that might lead to large profits -- a planned big expansion of Cadillac's portfolio. GM is planning to add large rear-wheel-drive sedan into Cadillac's lineup that will compete against rival models like the Mercedes S class.

GM is planning around 10 new or redesigned Cadillac models by mid-2015. According to Morgan Stanley analyst Adam Jonas, expanding Cadillac's portfolio and shifting the luxury brand up the luxury chain to compete against German rivals "can seriously move the needle" on profits.

Topics: gm

If you liked the article, share on:

Pin It

Comments

Recommended

It’s quite safe to say that this generation marks the rise of the electric cars. For the past few years, automakers have been very busy trying to find the perfect...
by - March 28, 2017
Want to go for a sportier look, but don’t have enough cash to burn? Good news for future Ford Edge buyers, as the 2018 model year will have an optional...
by - March 28, 2017
Audi refreshes its portfolio as its go-faster division officially announces the release of six new RS models by the end of 2018. That’s quite a huge number of cars to...
by - March 28, 2017
Has Toyota started the production of a new electric supercharger? Well, a patent that was recently published indicated that they might have. And this electric supercharger looks more durable and...
by - March 27, 2017
The Tesla Model S has finally arrived in South Korean soil and is now available for test drive. But, there’s a catch. You’ll have to wait several months if you...
by - March 27, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries