news | Ford and GM attempt to move into luxury sector with release of new models

Marking a resurgent entry into the highly competitive luxury automobile sector, Cadillac and Lincoln have both unveiled new high-end sedans at the New York Auto Show intended to compete with leading German marques. The resurrection of the storied Lincoln Continental brand marks parent company Ford's effort to broaden its portfolio following the sale of its luxury marques late in the last decade. Cadillac's CT6 represents GM's efforts to compete with offerings like the Mercedes-Benz S-Class and BMW's 7-series.

Analysts believe the carmakers hope to improve profitability partly through sales of high-margin luxury vehicles. The upmarket move may be a response to increased competition in the midrange segments, in addition to an attempt to boost tepid sales at home. Lincoln experienced an uninspiring 1.2% growth in US sales during January and February, a far cry from the 9.2% growth experienced by the overall market, Reuters reports.

GM brands currently achieve an even spread, covering most sectors of the market from economical to high-end.

Ford currently lacks a high-end offering, but is positioning Lincoln to address this gap in its product range.

For Ford, the high-end Continental rounds out a product range that was decimated in the wake of the economic recession of the late 2000s. The Dearborn based automaker sold British marque Aston Martin in 2007, followed by Jaguar Land Rover in 2008 and Volvo in 2010 in an attempt to streamline operations. However, the sales left Ford without a high-end luxury competitor as it struggles to redefine and sell the Lincoln brand to buyers unfamiliar with the name.

Strategically, the introduction of luxury cars holds appeal not just to the Chinese market, but to millenials and under-thirties, who are increasingly eschewing car purchases for alternative methods of transport.