General Motors Co.’s (NYSE: GM) Faces Stiff Competition From German Companies


General Motors Co.’s (NYSE:GM) have always faced a tough competition from its German rivals. General Motor (NYSE:GM)’s Cadillac division has fallen short of its German rivals in terms of revenue, consistently. General Motors Co.’s (NYSE:GM) are looking to change that by introducing a line of ultra-performance cars. This will be Cadillac’s last chance to uphold its reputation and beat the German companies. Most of these new cars will come out during next year.

Cadillac’s most anticipated version is the ATS-V which will be released in 2016. Though it’s still a year or so away from its release, the new model is the most anticipated in the Cadillac line. CTS-V super car generated a pile of sales, even though customers reported that it was ‘too strong’ to be handled; hence in an attempt to preserve sales and lives, General Motors Co.’s (NYSE: GM) came out with CST V sport. This wasn’t a high performance car in the real sense but it still was more powerful than the usual Cadillac.

There’s this feeling brewing up that ATS-V might come across the same hurdles as CTS-V; customers might complain about the car being too powerful and too hard to control but such cars are usually released at car shows sharpen the brand image. General Motors Co.’s (NYSE:GM) really need that. Sales have been surging up, by 4.4 percent in the first ten months; one can only anticipate the sales growing larger by the month.

German companies have somehow outwitted General Motors Co.’s (NYSE:GM) in every category and managed to grab the sales year after year. Perhaps General Motors Co.’s (NYSE:GM) is emphasizing too much on power, thus losing its audience. There have been complaints about General Motors Co.’s (NYSE:GM) producing cars just for the heck of it rather than tending to matters like road safety, efficiency etc.

General Motors Co.’s (NYSE:GM) is also facing stiff challenge from other companies especially Tesla. Cadillac is being squeezed by BMW, Audi and Mercedes. With competition heating up at home, and from foreign companies, it will be a tough task for General Motors Co.’s (NYSE:GM) to stick around for good sales.

Germans hold a leverage whenever they release new models. German companies boast total sales along with growth of previous models and the impact created by the latest model. Mercedes sales went up by 7.5 percent during the first 10 months. BMW sales went up by 11.3 percent while Audi’s sales shot by 14.7 percent. With such increases, in such a short time, Germans enter the market with a ruthless reputation preceding them.

In these circumstances, General Motors Co.’s (NYSE:GM) must come up with something extra ordinary to topple the German companies off the top. General Motors (NYSE:GM) are relying too much on Cadillac; Cadillac has done well for them in the past but it just might not be enough to take out the whole German competition. Hence, in the light of such a predicament, General Motors (NYSE:GM) must come up with something substantial in order to climb.