General Motors (NYSE: GM) is heading into car show season with an increased focus on muscle – literally. The muscle cars that made GM famous have returned, and preliminary rave reviews have buyers eagerly lining up. Between the Corvette’s new Stingray model, the Camaro Super Sport, and the Cadillac CTS V, GM is reigning in the accolades faster than anyone could have expected.
The automaker was bankrupt just a few years ago, selling bland cars with a tremendous line that failed to strike consumers. As the firm grew smaller, it also grew smarter. The firm is delivering the goods, giving consumers what they want, and even in a fuel efficient package.
Chevrolet is reviving the Z/28 Camaro as a lighter, high-performance version of the muscle car. The Z/28, which debuted in 1967 and was last sold in 2002, has been reengineered for 2014 at 3,800 pounds, about 100 pounds lighter than a standard Camaro. It’s designed so that it can hit the racetrack, with the Corvette’s powerful V-8 engine and bigger brakes. To shed weight, it forgoes some standard comforts, coming with a one-speaker radio, stiffer seats and manual transmission only. “We really wanted to try to get rid of some of the mass and make it a real enthusiasts’ car to be able to use for spirited driving on the street and open track days,” said Mark Stielow, performance engineering manager for the Z/28. Engineers also freshened up the Camaro’s profile for 2014, reshaping the front and rear to make it more modern and athletic looking.
The growth in the US is further emboldened by growth abroad. China is the real growth driver for GM. Several of GM’s US brands have been experiencing real success in China, and GM is looking to expand its reach within the country going forward. The company recently appointed a new leader for its Cadillac brand in China, and has guided for sales to triple by 2015. Typically, Chinese consumers have shown preferences towards German luxury car brands, but GM is determined to change that. So far in 2013 China sales are up 8% (YoY in January and February), and continue to be gaining steam. GM is currently in the process of building 2 different Chinese assembly plants (operational by 2014) to greatly increase its production capabilities in the region.
If GM can continue to grow in China and abroad, they can be poised for another boom run not felt by the firm since it’s hay day in the 1970’s.
