General Motors Company (GM) has planned to introduce a fresh and new design for its Cadillac dealerships. The plan, a part of the company’s brand makeover initiative, is expected to be designed and implemented over the next two years.
The makeover has been planned with the intent to uplift the image of these stores, making them more appealing to car shoppers and more competitive against Japanese carmakers and certain other luxury brands like Mercedes and Lexus.
In this process, nearly 200 Cadillac dealerships in the U.S. will spend large amounts in renovating their showrooms with oak walls, limestone exterior tiles, modern lighting and leather chairs, as per the company specifications. The estimated cost for each dealer will range somewhere between $200,000 and $1 million.
GM expects that the majority of its 4,500 U.S. Cadillac, Buick, Chevrolet and GMC dealers to sign up for similar renovations by the end of the next fiscal year.
During the first quarter of 2011, General Motors earned a profit of $3.2 billion or $1.77 per share, increasing more than threefold from $865 million or 55 cents per share in the year-ago quarter. However, more than half of the profit were one-time gains from sales of the company’s ownership interest in Delphi Automotive LLP ($1.6 billion) and Ally Financial Inc. ($300 million).
Excluding these gains and a $0.4 billion goodwill impairment charge at GM Europe, resulting from a change in accounting standards and charges of $0.1 billion at GM International Operations related to revised tax regulations affecting the company’s India joint venture, GM’s profit stood at $1.7 billion or 95 cents per share.
Revenues during the quarter went up 15% to $36.2 billion on sales of 2.2 million vehicles globally, up 11% from the prior year. Strong demand for its fuel-efficient line-up including Chevrolet Cruze compact and Equinox crossover boosted the company’s sales. The automaker occupied a market share of 11.5% during the quarter, up from 11.1% in the year-ago quarter.
However, the company’s business in the upcoming quarters may face threats from other big automakers like Chrysler Group LLC, Ford Motor Company (F), Honda Motor Company (HMC), Nissan Motor Company (NSANY) and Toyota Motor Corporation (TM).
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