Cadillac’s Long Term Plan For Success Centers On Distancing Itself From Parent GM

Cadillac’s Long Term Plan For Success Centers On Distancing Itself From Parent GM

General Motors leadership earlier this year cemented intentions to shake off years of fits and starts at Cadillac and commit to a categorical repositioning of the 113-year-old luxury brand, backing the move with a $12 billion capital investment, a disengagement from the automaker’s traditional management structure and a stand-alone New York headquarters for the unit slated to open in September.

WardsAuto recently caught up with Cadillac President Johan de Nysschen, a veteran luxury-brand executive hired away from Nissan’s Infiniti arm one year ago and tasked with executing the latest comeback plan.


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TomMTomM - 7/27/2015 2:23:36 PM
+5 Boost
Gee - what nonsense
First - EVERYONE knows that Cadillac is GM - the only way to separate Cadillac from GM would be to spin off the company into a separate entity - and I would not agree that would be good for anyone. Cadillac was the main American Luxury car as part of GM for a long time - and could be again - if they actually sold American Luxury Cars. They should be PROUD of that heritage. And a good manager of the division should be able to produce good cars from ANY place - if he needs to be in NYC - he is an idiot.
And that is problem number two - Cadillac has FAILED miserably in identifying its market and making cars for that market. It makes no difference if Cadillac can produce cars that can compete with BMW - when no one who would BUY a BMW will buy a Cadillac. However - Cadillac cannot produce enough Escalades to fill all the orders - a vehicle that DeNysschen would get rid of if he could.

What Cadillac needs is to produce typical American Luxury Cars - where the car has MORE ROOM - MORE LUXURY - and rides like a Rolls Royce - and is Quiet as a Rolls Royce. These ITSY BITSY cars are not Luxury cars - they are sports sedans - and they do not meet the requirements of those looking for an American Luxury Car. (When Cadillac downsized - they made the Seville look like a Rolls - not a lesser vehicle)

Ford is going to sell a ton of the new Continentals - with all of the people around waiting to replace their Town Cars - and Deville/DTS. I suspect they are going to price the CT6 out of the market.


TomMTomM - 7/27/2015 2:27:45 PM
+3 Boost
By the way - for those who don't agree with me - Compare the ATS to the C-Class Mercedes. The ATS BARELY competes with the Lower CLA - but a C-Class just blows the ATS away. I am not talking about the V/Amg - they don't sell in large enough numbers to be the basis for a car company.


W124E320W124E320 - 7/27/2015 6:33:52 PM
+2 Boost
The ATS came out in 2013 the new C Class in 2015... did the ATS beat the previous C Class, there is no question...


MDarringerMDarringer - 7/27/2015 4:24:38 PM
+4 Boost
The ATS, CTS, and CT6 are competent cars.

All three need wheelbase extensions.
All three need much better styling.
All three need NAMES.
All three need a 15% price reduction to buy sales.
All three need a much better dealership experience.

I also fail to see Mercedes as the gold standard. It is merely one interpretation of luxury. Cadillac should be much less European and much more American with the hint of muscle car rumbling under the surface.




TomMTomM - 7/27/2015 5:22:18 PM
+2 Boost
IT was Not My intent to imply that Mercedes was the gold standard - I merely wanted to compare one car series with what Cadillac envisions is the competing model. You are correct about the wheelbase extensions (Some are already available in China). We already have examples of where the styling should go from GM itself - and if they actually made THOSE cars - they would sell like Eggo Waffles.

In effect - the cars already have that price reduction - because the dealers cannot sell them without major discounts. However - I am not one of those who believes that a fancy dealership with upscale appointments would solve anything - unless the cars were what I wanted them to be. And they aren't - and while DeNysschen might just laugh a say that they are looking for a different customer - just how well is that doing for them?


MDarringerMDarringer - 7/27/2015 5:56:18 PM
+3 Boost
@TomM Jockitch De Nutscratch is a moron that got fired (most likely) from Audi and then fired (most likely) from Infiniti.

Lincoln is about to hit paydirt with the Continental but NOT because people need a new Town Car. The Continental will offer a bigger vehicle than the 5 Series, E Class, and A6 for the same price with MORE pure luxury and it will siphon sales from the Germans.

It will succeed because it will be unabashedly American, unashamedly different, and charismatically delightful I predict.

If Lincoln can quickly--and I mean quickly--recast the truly terrible MKZ with American gothic styling, give it pure luxury, and an name, they will have a winner.

DeNysschen cannot possibly understand Cadillac's "Americanness" because he is not American at heart.

Cadillacs should be biggler, glossier, and more flashy than their German counterparts.

They should use the proportions of the gorgeous Sixteen show car to create an unmistakeable design statement.

Greater length does not need to mean greater weight, but greater length makes a statement.

PS You'd probably love our Lincoln Town Car project. We're planning to stuff the engine from a wrecked late-model GT500 into it.




wcbrownwcbrown - 7/27/2015 5:54:54 PM
+2 Boost
@TomM - I'd like to 'totally' agree with you but I simply cannot because much of what you said is your opinion and not facts. Everyone knows that a spin off from GM probably won't happen without a significant investment - more than $12 billion. I truly believe that Cadillac and it's designers are proud of their heritage and YES, the marketing team did need to be moved to NYC or another place that inspires them. In Detroit, (no offense to anyone), the marketing and design teams are 'too close' to GM, the corporation. With that comes 'corporate' mindsets and mentality, and influence from the other brands on how they do things, rather than handling Cadillac like the luxury brand it is and has always been.

Cadillac has, indeed, identified it's market segments and is finally producing cars that compete better than they have ever in recent history. Perception is the reason why buyers aren't flocking to Cadillac. Once the 'father's Cadillac' perception wears off, then you will see and Cadillac is doing much to shed that persona. Cadillac has it's best lineup to date. The CTS (I have a VSport), ATS, XTS, ELR, SRX and Escalade (I have the new one) are phenomenal. I cannot tell you how many people ask me what kind of Cadillac is my CTS. That tells me one thing...Cadillac needs to seriously up the ante on getting the marketing positioning and messaging about their product portfolio correct. Then, getting people in the cars is the next step. The product is there.

In NO WAY is the ATS an inferior product to a ridiculously cheap Benz CLA. Have you been in one of those? Have you driven one? I have and it's a stylish, cheap, front wheel drive car with a Benz logo on the front. It's cheap in price and quality, but because of its price, MB is selling a ton of these things. Buys want a cheap car with image and that car provides that. The ATS (I've owned two) can go head to head with any of its peers any day of the week.

We all know producing 'traditional American Luxury' is not going to translate to sales success for Cadillac. Look at Lincoln's current predicament. They can barely compete with Buick...and Buick is far better all around. Cadillac is finally getting its act together and producing cars that the younger demographic they so anxiously desire actually want to own, despite sales slumps. I can guarantee the new Lincoln Continental will not be some huge success story. Sure, it may be comfortable, maybe even stylish and quiet, but it will not compete well. There are too many other better alternatives to choose from with better all around dynamics, including the luxury quotient. Cadillac clearly doesn't want the Town Car/DTS crowd and I don't blame them. Let those buyers to Hyundai Genesis/Eqqus, Lexus LS or even Buick LaCrosse. Everyone knows Cadillac means big and luxurious. Not it's time for them to show that they can compete with the best in the WORLD, not just a domestic 'big luxury mentality' U.S. That's not the new Cadillac.


MDarringerMDarringer - 7/27/2015 7:31:01 PM
+1 Boost
The CLA is largely a Renault Megane...


TomMTomM - 7/28/2015 6:00:09 PM
+1 Boost
Sorry - but Cadillac - according to you - has identified its market - and it makes competing card - and that is what I do not agree with.

Instead of actually trying to identify what a Cadillac buyer wants in a Cadillac - they decided to attempt to compete with BMW - and while the cars are indeed competent - that are boat anchors on dealer inventories - because that are NOT the cars that Cadillac Buyers want - and BMW buyers have not been swayed.

Yes - the ATS is a better car than the CLA - but the ATS is not positioned against the CLA - it is positioned against the 3/4 class and the C class. The ATS cannot compete with those cars - even they have larger rear seat room and bigger trunks - among other misses. AND as I pointed out - it is not that the cars Cadillac is making are not good - it is that they are not what Cadillac Buyers want. And so they are selling like used Amc Pacers do.

And NO - I do not agree with you that selling traditional American Luxury cars will not work - the Escalade PROVES that not to be the case. AS far as what CUSTOMER Cadillac wants - the problems is THEY DON"T HAVE ANY - to ANY EXTENT - for these newer cars. They can say they want the BMW type buyer - but THOSE people are avoiding the Cadillac like the plague. There is NO REASON why Cadillac cannot mean - Larger - Roomier - and more Luxurious - and produce a car that competes with the Rolls instead of a sports sedan complex that does not sell well here or in China. In fact - in china - they have already brought out a Longer wheelbase ats - because the Luxury Car buyer there is more likely to be driven - that to drive himself - and the ATS back seat FAILS as a luxury car - it actually fails at anything but a package shelf.


wcbrownwcbrown - 7/27/2015 5:59:11 PM
+3 Boost
Sorry for the typos guys. Typing too quickly in a time crunch.


nguyenvuminhnguyenvuminh - 7/27/2015 6:21:38 PM
+2 Boost
"...Lincoln is about to hit paydirt with the Continental ..." Let's diary to follow up on this in about 3 years time and see the paydirt.


MDarringerMDarringer - 7/27/2015 7:30:14 PM
+1 Boost
@nguyenetc. You are forgiven for your utter lack of vision or knowledge about the rumble behind this vehicle. There is literally no premium sedan that does velvety luxury as its priority, but there is a market for it. We started a list because we have people walking in wanting it. We also have refundable deposits for it. Your ignorance over the groundswell waiting for this car is probably matched by your snobbery. The Continental will make me money and I like that.




DoukasDoukas - 7/27/2015 9:01:23 PM
+1 Boost
I'm one that is interested in the Continental. If they come out with that. velvet/suede interior, it would be enough for me to into a showroom.


MDarringerMDarringer - 7/27/2015 9:26:59 PM
0 Boost
stay tuned


skytopskytop - 7/28/2015 6:16:17 AM
0 Boost
Words, just words.
As long as Caddy uses a GM frame, Chevrolet engines, Chevrolet transmissions, GM slimy leather interiors, and 10% body weight in garish chrome, the name and build of Cadillac will inexorably be bound with GM/Chevy.
A Caddy is a re badged Chevy. Period.


MDarringerMDarringer - 7/28/2015 11:21:45 AM
+1 Boost
More on....that later. You do realize that Cadillacs and most GM products are unibodies, right? Audi uses VW engines. Is that OK? Mercedes uses Renault engines. Is that OK? Maserati uses the Chrysler 300 to underpin their vehicles. is that OK?


TomMTomM - 7/28/2015 6:31:43 PM
+2 Boost
Sorry - but MOST of the Cadillac models DO NOT Have equivalents in the Chevy Lineup. Most of the ones that do are truck based. There is no car in the Chevy line that is RWD and the size of the ATS or CTS. And the the Cadillac XTS came first - if you are comparing it to the Chevrolet Impala.

The Hydramatic division that produces Automatic Transmissions for General Motors Vehicles is NOT part of Chevrolet - and has produced Automatic transmissions for ALL GM vehicles for years - as well as for Rolls Royce and Bmw too.

Most automotive seat are made by one of five outside suppliers to the Automotive Industry. The days of the old GM suede and leather interior are LONG GONE.

Ad far as chrome - that is a personal preference - and surprisingly one that while has waned in the USA - is still a preference of Upscale cars in most other areas of the world - In europe - there will be more chrome on most cars than the same cars will have in the USA.




carsnyccarsnyc - 7/28/2015 12:48:30 PM
+1 Boost
I know car companies collaborate but an engine agreement between Benz and Renault is far cry from the million Audi/VWs hybrids out on the street.


TomMTomM - 7/28/2015 6:12:24 PM
+2 Boost
For decades - most of the top manufacturers of automobiles used parts from other makers. Rolls Royce and Bentley used GM transmissions - as did BMW. While the GM Auto transmission may not be the first of a particular type - say the 8speed - they generally become the best of the type. General Motors Delco Air Conditioner Compressors were standard equipment on Lots of big names - including Rolls - Lincoln, Mercedes, and lots of specialty car manufacturers too.


TomMTomM - 7/30/2015 3:46:20 PM
+2 Boost
The first thing I think Cadillac should do is price the ATS to compete with the CLA. This would be a clear win for Cadillac. The RWD ATS is leagues ahead of the CLA.

Then they need to produce a C-Class fighter - and either they take the current ATS LONG VERSION from China - and put that in the area - or Better - they should put the current CTS in that place.The current CTS would also be very competitive with the current C-class 3/4series/A4.

Then - they should produce a LONG version of the current CTS - to take on the 5 Series/a6/e class. THis would not be a clear win - since the Cadillac still has a tiny trunk - but at least it would be a little more competitive.



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