Will de Nysschen take Caddy into small cars?
July 16, 2014
LINDSAY CHAPPELL
Johan de Nysschen is barely a week into his new job as president of Cadillac. It will take some time to learn what he will attempt to do there.
But keep your eye on the small-vehicle end of the luxury spectrum. That will be de Nysschen’s most likely play for the American premium king.
As the global leader of Infiniti for the past two years, de Nysschen made clear and compelling arguments about the direction of the world premium market. His assessment of luxury can’t be different for an aspiring Japanese manufacturer than for an iconic American brand.
Here’s what he said a few months ago as president of Infiniti in a conversation about the future of premium:
“We have to consider the evolution of markets. There is a strong component of young people that are beginning to enter the market. By the end of this decade, 80 percent of sales in the premium sector will be to the millennials.
If Cadillac does go smaller. it'll most likely be based on an upcoming fwd platform. The danger with this is that Cadillac has now established itself as exclusively rwd sedan division, and a shared fwd platform could not only dilute that, but also might be seen as a gussied-up Buick or Chevrolet. To avert this, it'll take some exceptional engineering and styling to really make the car stand apart and unique.
I can see the other side of the sales numbers, financial benefits, and federal mpg requirements. It seems to be working so far for Audi and Mercedes-Benz.
Though if Cadillac is going to do a smaller sedan, then they better start ASAP and not be seen as playing catchup.
If Cadillac does go smaller. it'll most likely be based on an upcoming fwd platform> The danger with this is that Cadillac has now established itself as exclusively rwd sedan division, and a shared fwd platform could not only dilute that, but also might be seen as a gussied-up Buick or Chevrolet.
Yes he will go into smaller cars and crossovers. BAM, end of discussion!
BTW, he's the one that pushed for and got the ball rolling on the Infiniti version of the GTR, which will come out after he is gone. So he gets that you need aspirational cars on the high end and attractive small cars on the entry level side.
Buick is not and WILL NOT be a competitor to Audi/Mercedes/BMW. It does not have the prestige, cachet, or privileges of ownership.
Buick can have an alternative product, but it won't compete.
Cadillac needs small cars. but the focus needs to be on the HIGH END first and foremost -- and then the entry level.
Besides, I'd rather Cadillac strengthen the ATS family BEFORE attempting something sub-ATS.
No reason why the Chevy Spark couldn't receive the a Escalade treatment with high-end leather, a twin turbo version of the 1.2, special LED lighting and other trim changes to be made into a very nice Cadillac for urban dwellers and young buyers who want the Cadillac name, prestige, and ownership experience.
I hope Cadillac can do something credible on the small end. I've long advocated for the ULC or something very much like it with distinctive Cadillac styling.
Why should there be NO DIFFERENCE between Buick and Cadihack? By all means, bring out another worthless Cimarron with rear wheel drive that can't carry but two people but has four doors.
Based on Audi A3, and Infiniti Q whatever, I would say not a good idea.
I hope first he eliminates Cadillac without fog lights and Cadillac with cheap hubcap like wheels that says your luxury car is a deal and a Cadillac without nav systems.
Cadillac has a lot of work to do to get creds before it goes chasing after a quick buck.
Based on Audi A3, and Infiniti Q whatever, I would say not a good idea.
I hope first he eliminates Cadillac without fog lights and Cadillac with cheap hubcap like wheels that says your luxury car is a deal and a Cadillac without nav systems.
Cadillac has a lot of work to do to get creds before it goes chasing after a quick buck.
If Cadillac goes this route, it shouldn't offer cheaper small cars. They should be every bit the premium piece that the ATS and CTS are in their segments. So, a nicer Verano ain't gonna cut it. You'd need, minimally, an Audi/Mini grade FWD platform and related drive trains. And, frankly, GM needs to be slightly better in some regards. Like Alpha or the HFV6, it's fine for this platform to debut as a small Cadillac and be shared with Buick and Opel. But the Cadillac version should be the first and the best.
You'd probably be looking at a premium subcompact and compact platform, three and four cylinder turbo gas and diesel engines, premium automatic tranaxles, and room for Voltec and V-Sport versions. Available with all the infotainment and luxury features as other Cadillacs, these would start at around, say high 20s and range to close to mid to high 40s for a loaded V-Sport. To be credible, these would have to be very, very good and strongly competitive out of the box. Tough to do, but the business case is probably really strong.
Smaller will help them in California. Now, what would they call it? They pretty much lopped off the chance of a smaller caddy with the ATS. Maybe a new naming scheme?
Let's take ELR, the only thing it shares with the volt is the powertrain, and even that is enhanced.. everything else is re-engineered and or completely unique. Every inch of the insides is hand crafted semi aniline leather or better. Every material is premium and or genuine. There is no cheap.
Get this, the voltec technology itself is a masterpiece of engineering. The thermal management system has close to 200 patents. Yet, Cadillac gets roasted for it.
Bottom line, Cadillac needs high end credibility first, before fwd adventures
Let's take ELR, the only thing it shares with the volt is the powertrain, and even that is enhanced.. everything else is re-engineered and or completely unique. Every inch of the insides is hand crafted semi aniline leather or better. Every material is premium and or genuine. There is no cheap.
Get this, the voltec technology itself is a masterpiece of engineering. The thermal management system has close to 200 patents. Yet, Cadillac gets roasted for it.
If Cadillac's intent was to build an attention-getter instead of a serious-profits-getter, the basic idea of the ELR was not a particularly bad idea. BUT, once the decision to build it was made, bad decision after bad decision after bad decision doomed it.
It's common knowledge that voltec 1 was reaching end of life, and an improved voltec 2 was in the pipeline. Nevertheless some shortsighted dunderheads ignored the opportunity to make the ELR the first voltec 2 and a showcase for the technology. Then any chance of it being a halo car, with everything Cadillac had to offer, went out the window with decisions to not offer things like a sunroof, cooled seats, head up display -- not even on the most expensive model. And they capped it off with pricing that even the most fawning reviewers found troubling.
the new millennial buyers who will soon want to take their first step into luxury with a respectable starter car -- a small Cadillac crossover, a B-segment Cadillac hatch, an A-segment Cadillac.
As has been mentioned upthread, Buick cannot do this. Nope. They simply cannot compete with the entry level Germans. Not at this point, anyway. Cadillac could.
Maybe....just maybe....Buick could pierce the Mini Cooper segment if it gets the Adam. But, they would have to do A LOT of things right.
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