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Cadillac: Product, Other Fixes Coming; Patience Required

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#1 ·
Cadillac: Product, Other Fixes Coming; Patience Required
Wards Auto
By David E. Zoia
Nov 25, 2014

LOS ANGELES – Patience is needed – particularly inside General Motors, Cadillac President Johan de Nysschen says, as he embarks on a mission to return the brand near the top of the luxury-car rankings.

The to-do list is a long one that includes a product-line expansion drive pointed toward 2020, as GM takes on the herculean task of convincing high-end luxury-vehicle buyers to put Cadillac high on their shopping lists.

“It has to come now,” he says of the CT6. “It is an important part of this journey of elevating the brand and building on credible product. If we want to really entrench Cadillac as a formidable player in the premium segment, it’s necessary to have flagship cars that can take on the very best the German brands have to offer.

On the drawing boards are a model below the ATS in size, a CUV positioned between the next-generation SRX and truck-based Escalade meant to challenge the Porsche Cayenne and BMW X5, and two smaller CUVs that would compete against the BMW X3 and Audi Q3 and even more diminutive models such as the BMW X1.

Some of the new entries will be in showrooms by 2017, with the product assault peaking in 2019-2020, de Nysschen says. Although the China market is clamoring for it, the smallest CUV won’t come until after 2020, however.

“We have one crossover and one SUV,” he adds. “It’s strange (to) look how many the Germans have. This is completely wrong. They are obvious gaps in our product lineup. We are working flat-out to develop market entries for Cadillac.”

In the meantime, the big play will be a model to come above the CT6 in size and price that will take on high-end S-Class and 7-Series models at the very upper reaches of the volume luxury market.

“That will be the ultimate flagship for Cadillac,” de Nysschen says. “That will be the real halo car for the brand. It will be the car that really embodies the sum total of the technical prowess, the engineering ability, the design and craftsmanship of General Motors. It’s a showcase for what we can do.”

“We will have more than one PHEV,” de Nysschen says. “It’s going to be a big part of our powertrain strategy. If you don’t do that, you don’t play in China. So this is part of the new paradigm.”

“This is the home market and where we generate most of our profits,” de Nysschen says of North America. “But ironically, China holds the key to success in the U.S. We must use China as a second volume hub for the brand, so that it can share the burden of generating the volume to support the business case of all these new products.”

*Full Article at Link
 
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#4 ·
That's just it, nothing started 15 years ago. I've been saying this for some time. What Cadillac attempted at the start of the century was a not a world class revival. It was nothing more than a half-baked attempt with numerous holes in it, which is exactly why Cadillac is in this position.

Cadillac's revival is starting now. The difference in their business plan is night and day.
 
#3 · (Edited)
“Magnificent product…comes with a cost premium,” the Cadillac chief says. “It costs us no less to produce (the CTS) than it does BMW to produce the 5-Series. People say to me, the sales aren’t what they should be, (but) this shows shallow insight.
I thought this bore repeating.

“We can’t go (down market) too far, too soon,” he says of prioritizing other new entries ahead of the B-size CUV. “I want to spend some time taking the center of gravity of the brand upscale.
.... and this.

“(GM) is a company that is used to playing in the big league,” he says. “And the rulebook in the premium sector is different. In the mainstream sector it’s about market share, volume, creating the incremental sale. If you apply that to the premium business, you end up with Cadillac with 30 years of erosion in brand equity.

“Until now, (GM) managed (its) portfolio…with the same (methods) applied across all the brands. (But) what’s good for Chevy, GMC and Buick may be entirely wrong for Cadillac.”

.....and this.

I like just about everything I'm reading about Mr. De Nysschen.

But one person I haven't seen mentioned in any of the recent press about his plans is Mary Barra.

She hired him!
 
#16 · (Edited)
I thought this bore repeating.



.... and this.




.....and this.

I like just about everything I'm reading about Mr. De Nysschen.

But one person I haven't seen mentioned in any of the recent press about his plans is Mary Barra.

She hired him!

If one can disagree / agree / just set aside the particulars of picking NYC + the alphanumeric naming convention..... to no real surprise JdN is hitting 110 out of 100.


Wonderfully frank and to the point and also.....concise and well thought out.

Nicely said as well given what must be said.

Not knockin' nor putting anyone on a pedastal either but we haven't had such a presence like this since Mr. Lutz and yes, there some differences in style - that in net are irrelevant compared to what is similar.

Just recently I checked all I could find from Ms. Barra and some others and 'imo' at the very least while not meaning to exclude anyone else she and Mr. D. Amman have in the necessarily different roles they occupy and speak from - have ( also ) been right there as one would want.

Particularly impressed with Ms. Barra all in all with regard to all this including getting JdN in the first place.

I just hope they really will support him fully over a long enough term to matter and when the sudden, rim busting potholes in the road appear - which will happen and always do.

Also separately, the whole process and people involved in obtaining JdN really do deserve a shout out.

One can only hope he can continue to speak fully, and freely as he sees fit.

**********

Separately -

Perhaps misplaced in a sense ( also ? ) but all of this seems to be a logical extension of no more crappy cars.

And more, much more from all other possibly relevant comments she has said.


Although more of an important sign post for the long journey ahead, the mention of a 911 type car in the future is more important than many realize - but not because of the possibility of such a product.


So ....


And there are more like it.

Only thing I would wonder about - hope to hear about eventually is .... JdN and some kind of role with regard to Buick - Buick / Cadillac eh 'co ordination'...... and then maybe later......


Quite frankly would not mind at all if he at least was able to give a quick look over ( words are failing me here ) and quick opinion with some kind of variable weight - of some sort concerning certain Chevrolet product activities as well......

Don't want anymore '71 Caprices - or anything remotely similar.

The basement needs to be a good foundation - and quit tryin' to be part of the Penthouse and basically..... everything in between.

In the long run though played out in a sort of nominal fashion... all this Cadillac change will ultimately be great for Chevrolet although necessarily different.

Gotta' keep Buick - and GMC safe and moving ahead as well for that to bear fruit.... hence....


Haven't heard squat from the Board worth mentioning with regard to this ( maybe I missed something ) but then again..... that's the kind of Board it is and how things appear to be 'set up'.


Really do think..... Ms Barra is...... whether fully intended explicitly or not, starting to deal with the decades old 'over Chevroletization' problem @ GM - which as always, has been 'the' problem.

Interesting. to say the least and also ( imo ) spot on that JdN was able to articulate a future financial reality concerning ( eventually ) the GM Premium ( Cadillac - for now ) efforts will help the mainstream products... and brands...... who face all the increased regulatory costs yet also in a less capable mainstream market. Including with regard to the 'Trucks'.
 
#6 ·
I'm looking forward to seeing the dealership restructuring. It's hands down one of Cadillac's biggest problems. You can't have business being spread across 900 dealers because there isn't sufficient profit being funneled into all of them to support a world class experience.

When the dealers don't have enough business, they don't have the kind of money it takes to upgrade their facilities and invest in everything else that it takes to compete with the Germans. Cadillac literally has some dealers selling 10 vehicles a month, right next to Chevys. You'll never see them create more floor space or a standalone store or upgrade because they have no money. Those kinds of situations cannot exist.

There's a reason why the competition has 250 - 300 dealers.
 
#8 · (Edited)
the smallest CUV won’t come until after 2020, however.
That's five years more years without an entry into one of the hottest segments going.
Mega Fail. They should be able to get this done by 2020.

Cadillac literally has some dealers selling 10 vehicles a month, right next to Chevys.
Those dealers are rural. They should be left alone and allowed to continue as is.
 
#10 · (Edited)
Boy will I be glad when these guys are done with their pressers.

What will that be, around 2025? LOL.

That's five years more years without an entry into one of the hottest segments going.
Mega Fail. They should be able to get this done by 2020.



Those dealers are rural. They should be left alone and allowed to continue as is.
2020 is six years. But where on earff have Caddy Lack been since this segement blew up some years back? Dumb and Dumber, meet Clueless.

Getting SUV/wagons/whatever rolling out of the factory doors should be #1 PRIORITY.

ELR is a dog and you should let sleeping dogs lie. Coupe sales vs. SUV sales are like Mercury (the planet) next to Saturn (the planet). No comparison.

That it has taken this freakin long to figure out Hmmm, ya know, Hans, mebbe we should stick our toes into that hot wagon segment!? is perplexing, to put it mildly. :confused::confused::confused::confused::confused:


These guys are all city slickers. To them, rural dealers are all like the Idaho Potato Farmer ads. A bunch of shoeless hick hayseeds who have no clue and will never qualify for NYC status.
 
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#43 ·
Small crossovers, no. What concerns me is the sub-ATS car.

ATS should definitely grow in size, but I don't think it should move significantly upmarket and I don't think they need a sub-ATS car just yet.

Really? Then why are Lincoln sales up 13% this year, while Cadillac down 5%?

The butt hurt for Cadillac will get worse. These figures were from before MKC hits the ground, and Lincoln posted a 25% gain in October.
You're kidding.

Lincoln is up 13% because they have a brand new model in a hot segment.

Cadillac is down 5% because it has no new product, is struggling with an upmarket expansion, and has brand new domestic competition against its oldest and most popular model.

Cadillac is expanding above its current station. Lincoln is filling out the bottom end of its lineup so far.
 
#13 ·
Sounds good. I think GMIers will look forward to the rwd CUV.

Thing is, in China Buick is already a pretty big deal - GM's biggest division by a wide margin - and they have a small CUV to sell right now.

I like that he is flushing out the top of the product mix, but now we have another sedan above the Ct6? I have a feeling it's really just going to be a wb stretch.
 
#19 ·
The X1 and maybe the Q3 are the only decent looking small CUVs. Im happy Caddy is delaying that model but quuckly repositioning the more affortable sedans in its lineup. That entry level sedan (which i will continue to hold him at is word) will be highly important being RWD in a sea of FWD models. Fun to drive luxury cars seems to be his moto. Im down with that.
 
#24 · (Edited)
Well, don't wish to be negative or knock your kin, but there is no other way to put it; that choice when other aspects are considered such as all aspects you could possibly think of concerning safety, is one of going down the mineshaft will also simultaneously transitioning from the pot to the fire. Ok, I get it; at least they didn't drown.....


Out of respect for you, I will just leave it at that but if you were willing to dig in an open minded and fair way especially with a sensibility regarding a bailout / Government intervention - Toyota who's at least equally massive bailout / cover up of the same nature but much greater dollar value ie extinction prevention is still on going - Toyota would be the very last one to go with.

Hell, even Mitsu looks a little better now.
 
#26 ·
It's interesting the insight this guy has into the market into 2020. It's like this: Bell bottom jeans were in vogue in 1976...If Levi's went public to say that in order to better compete in the jean business, we will have Levi's bell bottoms by 1983...customers will just walk away.

OK...too late...

This is the same with cars. What makes (any)one think they know what the market will look like into 2020???
 
#31 ·
.

I'm in Manhattan today experiencing some of the most unpleasant weather I can remember. I walked over to Hudson Street and snapped a couple shots of the new HQ. I apologize for the poor quality of the images. My phone belongs at the Smithsonian.

There's no banner that I could see or mention of the tenant about to move in. Sky Building Skyscraper Window Tower block
 
#33 ·
.

I'm in Manhattan today experiencing some of the most unpleasant weather I can remember. I walked over to Hudson Street and snapped a couple shots of the new HQ. I apologize for the poor quality of the images. My phone belongs at the Smithsonian.

There's no banner that I could see or mention of the tenant about to move in. View attachment 25961
They haven't even moved in and there is already dark clouds overhead................
 
#41 ·
excellent find, EJD1984 !


near the end iirc, where he talks about sales volume per year & separate reporting...
imho,
He needs Cadillac to BOTTOM OUT now so the separate reporting LOOKS all positive
 
#59 ·
I just re-read what you wrote, I think you are confusing ATP's (higher) with profits. (Also notable these new higher ATP, are on significantly higher equipment/content/cost cars).

Then factor in; Lansing Grand River Plant is running under 50% utilization, it just announced its dropping a shift, which means utilization is going to go down to the 35% - 40% range, now incentives are exceeding $10,000 - to flush-out the 2014's and the ELR is dead (at least temporarily).

Cadillac is probably making some money on the XTS and SRX and certainly the Escalade, but those 3 cars are models that are shared with its pedestrian counterpart, (just like EVERY Car/Truck/SUV in the Lincoln line)............. Lincoln isn't selling as many as Cadillac, but its not spending anywhere near the money Cadillac is.


And you're just playing games. Sales are nothing without profits, and Cadillac has significantly higher profits on every vehicle they are selling due to higher price points. Sales have fallen, but profits are way up. How is Lincoln doing for profits?
 
#73 ·
Why are we even talking about Lincoln in this thread? And in regards to profit we have no idea how much Lincoln and Cadillac make, volume doesn't necessarily have anything to do with profit.

Though I wish Cadillac today would be where they will be in 5 years, it's the deck we've been dealt and must wait. We all know the auto industry moves in long, slow product cycles that is difficult to swallow for everyone in today's instant internet world. And as Jesda said, Cadillac can't just launch expensive vehicles and expect people to consider them. It takes years, they started years ago and have more years needed to get there. It's a game of patience!
 
#74 ·
In the short term, it doesn't matter if Lincoln is profitable. Profits do not indicate where a brand is headed, especially if those profits are originated from less than class-leading products with minimal investment in design and engineering.

The Mark LT, for example, was certainly profitable, but it was a flop.

Cadillac is making the investment now to become something greater in the future.
Lincoln is being cautious, less ambitious, and less likely to be as successful 10-15 years from today.
 
#80 ·
Prior to the 60's few Americans bought Mercedes. By the 70's, came a long ramp up for Mercedes straight through the 2010's.
Mercedes has quite a reputation around the world.

BMW hasn't been making cars as long as Mercedes. And BMW didn't really make something memorable until the 2002.
 
#79 · (Edited)
De Ny says we have one crossover and one SUV ...it's strange how many the Germans have . Strange the man says , where has this genius been hiding his box of Crackerjack ?? Did he not know this was the hot growing market while ensconsed at Audi in the big room or was he too absorbed in renting hotel rooms ?? As a car man , he didn't read the papers and see car ads where a couple a cars are featured and the rest of the ad featuring crossovers/suvs' . You would have to be from another planet not to appreciate where the market was trending . So now he says its wrong , there are gaps in our lineup...but first we need another big boat Caddie . Look , Cadillac jr. executives , when the market is trending in a direction , it means that is the direction buyers are moving , walking , riding , pole vaulting , perhaps crawling if mobility is an issue ...to the dealerships and preferring to vehicle test the CUVs and SUVs and buy in that segment rather than test and buy the car models . Every other manufacturer , except Caddie and maybe Bentley were rocket scientists and picked up on this trend years ago . You can excuse Bentley , however , if you mention the word " hot " the staff probably think you are wanting a cup of tea , so they are off to plug in the kettle .
Lord , Cadillac really isn't changing , is it ?? You know , I don't think I'd want it any other way , it's so entertaining , like a dose of Pawn Stars latest episode every nite ....whose story line should I watch tonite , how will Chumlee get out of working tonite , or De Ny admitting there are gaps in the line up and the strange Germans ?? I know , I know it's tough to choose , but as contributors here , we are like bridegrooms waiting at the church , the bride never stays long enough to complete the ceremony , so we stand and wait , bemused but ever patient !!
 
#81 · (Edited)
Attacking De Nyschen for noting that a situation he had zero control over because he was at Audi and then Infiniti is strange? He did note the trends to CUVs genius, why do you think Audi and Infiniti have so many? As for the big boat Caddy, that has already been developed, do it's a done deal- what do you want him to do, cancel it? This gets my award for stupidest post of the year, which is quite an achievement.
 
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