Will GM Ever Catch Up to Ford?

Today, Ford

announced that January vehicle sales increased 7.3% year over year, as gains were driven by the popularity of its Focus and Escape models. Ford sales have grown consistently over the past year, and the company benefited this quarter from a reduction of incentives despite an increase in sales. The company hopes to continue this trend, as it will launch an all new Escape this summer, followed a new Fusion model this coming fall. Ford's success of late has largely been tied to the introduction of the new Focus for the 2012 model year. The car has received universal acclaim from many automotive publications thanks to feature content and a high level of technology for an economy car. Consumers have also emphasized fuel economy as one of their priorities when looking for a new car and are downsizing from larger vehicles as a result. While Ford has led Detroit's automotive turnaround, GM

has struggled to match its success. The company reported today that January US vehicle sales fell 6.1% year over year, fueled by a significant decrease in Cadillac sales of 29% year over year. While GM's Chevy line has shown signs of life led by a 10.4% increase in Cruze sales, the Cadillac line has suffered from limited product offerings and few new models. However, the brand looks to remedy that issue this year with the release of its new ATS and XTS sedans. GM has struggled to gain the same traction with consumers as Ford has. Ford has thrived with its technological offerings like MyTouch and Sync that have been developed with Microsoft

, while GM has yet to offer such a system. The brand is also still suffering from negative consumer sentiment given the losses that taxpayers are facing on their investment in the company. Despite these issues, GM has come a long way from its pre-recession lows and is a much stronger company as a result. It must continue to overhaul its product offerings if it wants to become another leader in the auto industry. Ford has provided the blueprint, and will see significant revenue growth if consumers decide to buy new cars again. The future of the American industry remains bright, and shareholders could see the benefits if these trends continue.