The Big Challenge for GM's Cadillac

The all-new 2014 Cadillac CTS is a winner, critics say. Can Cadillac tempt BMW loyalists to switch brands? Photo credit: General Motors

It's a truism in the auto business that if you build top-notch products, you'll succeed -- eventually. 

But "eventually" can be a long time, as General Motors  (NYSE: GM  ) is finding out.

General Motors has put a massive effort into making Cadillac's products as good as -- or even better than -- the best from the German luxury brands. That effort is starting to show results: The latest Cadillacs, like the new 2014 CTS sedan, are getting rave reviews from critics, many of whom have dissed GM's products for years.

But Cadillac's sales still aren't what GM would like, as many longtime BMW  (NASDAQOTH: BAMXF  ) and Mercedes-Benz loyalists aren't showing interest. The problem: Cadillac's products have improved, but its image still needs work.

What to do? In this video, Fool.com contributor John Rosevear looks at the next big challenge facing GM's old luxury brand -- and at how the giant automaker is likely to respond.

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  • Report this Comment On October 22, 2013, at 1:23 AM, Mootzarella wrote:

    Ok lets face it, the cars look good. But they make the ATS and CTS which look alike. I mean was the ATS necessary? Can't they come up with a nice 2 door car(Not the CTS 2 door, its ugly), and a nice convertible? Remember the El Dorado? What a bout a sleek body style like that and in a convertible as well. I liked that 2 door car they stopped making that came in a drop top as well, I think it was an XLR or something like that. Basically it was a re-tooled Corvette and over priced. C'mon Caddy/GM stop being cheap and arrogant.

  • Report this Comment On October 22, 2013, at 9:34 AM, Jason87467 wrote:

    Perception is one thing and being better is another aspect. John Rosevear speaks a lot on perception, but fails to say some of the Cadillac are already better than it's competitors. Many car magazines says so and so does Consumer Reports.

    He does say that GM has a marketing problem. That's not hard to understand because of' GM's lousy 30 year past record, but all that has changed. In time articles like this one will fade and GM will be giver true credit for what it deserve.

    I'm just an auto enthusiast and I do not work for GM.

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