Share price General Motors Company (GM) increased 1.5% to $34.85 on Jan 6, after the automakers leading luxury auto brand, Cadillac, reported outstanding sales results along with significant global expansion in 2014. Cadillac sales increased 5.2% year over year to 263,697 vehicles worldwide in 2014.
Cadillac performed significantly well in all the geographic locations. The brand’s sales in China escalated 47% year over year to 73,500 vehicles. The upside was driven by higher sales of the ATS and XTS sedans. Sales volume of the ATS-L was 13,276 units, while the sales of the larger XTS sedan went up 59% year over year to 32,559 units.
Cadillac also recorded better performance in Canada. The brand’s sales in Canada improved 9.7% year over year to 10,538 vehicles. The hike was driven by higher sales of the SRX crossover and the ATS sport sedan. Cadillac also performed well in other countries including Mexico, South Korea and Israel. Sales in Mexico went up 17%, while sales in South Korea and Israel escalated 118% and 73%, respectively.
However, Cadillac recorded a 13.8% fall in sales to 1,674 units in Europe and Russia. Sales also decreased by 6.5% to 170,750 units in the U.S. The decline in U.S. sales was partially offset by an increase in price of the vehicle to $47,000. The price of Cadillac is now higher than the luxury vehicles sold by BMW and Lexus. Moreover, in 2014, 74% of the ATS buyers were new ones.
General Motors is expanding the Cadillac brand globally. In 2015, the automaker will further focus on the brand’s expansion. The company will introduce the high performance V-Series models and the top-of-the-range CT6. The company expects that these introductions will further boost its global expansion.
General Motors currently carries a Zacks Rank #3 (Hold). Investors interested in the auto industry could consider better-ranked stocks like PACCAR Inc. (PCAR), Magna International Inc. (MGA) and Dana Holding Corp. (DAN), all carrying a Zacks Rank #2 (Buy).
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