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Public reporting as a separate unit could take until 2017.
Detroit Free Press
By: Alissa Priddle
November 19, 2014


LOS ANGELES – Cadillac must stand on its own two feet and has already begun operating as an independent global financial unit internally, said president Johan de Nysschen on the sidelines of the Los Angeles auto show Wednesday.

It will likely be a few years, perhaps 2017, before Cadillac is publicly reported separately, he said.

"We're already operating separately, financially, now," he said. Before Cadillac was measured as part of North American operations, lumped in with Chevrolet, Buick and GMC brands and fighting for resources.

Now Cadillac is operating as a separate global unit, accountable for its own results, but also free to make its own decisions, de Nysschen said. Going forward the brand must earn the right to invest in its projects.

Full article available at link.
 

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Honestly, if this turns out to be successful, I could see them doing the same with the other divisions... at which point we'd be back to the good old days (50s-70s) from a structural standpoint.
 

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They needed to do this to become a real luxury brand but I still think they need to go to a different design direction and I still don't like the new naming scheme.
Does de Nysschen have the power to change designers and the power to fire people (such as Ed Wilburn)?
 

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...lumped in with Chevrolet, Buick and GMC brands and fighting for resources...
Ummm, so what changes? Unless there is more money put into the pot, how is this going to help Cadillac? Are Chevrolet, Buick and GMC going to be left to fight over pennies?

That said, I don't disagree with separating Cadillac further from GM, I just don't understand how magically Cadillac will have more resources for development.
 

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This is great news and quite a bold move from GM. I personally think all of GM should be doing this as I have said many times before. Still maybe now Cadillac can make some really big moves.
 

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They needed to do this to become a real luxury brand but I still think they need to go to a different design direction and I still don't like the new naming scheme.
Does de Nysschen have the power to change designers and the power to fire people (such as Ed Wilburn)?
This man just separate Cadillac from GM, among many other historical moves. I'd say he has the power to do anything he wants. Cadillac is following his lead, not the other way around.
 

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This man just separate Cadillac from GM, among many other historical moves. I'd say he has the power to do anything he wants. Cadillac is following his lead, not the other way around.
I really believe that having the latitude to do what was necessary was part of his employment.
 

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From the article (Emphasis added)


We're trying to get a dedicated mind share for Cadillac," de Nysschen said, adding he wants to be free from having the same people who make decisions for Chevrolet also make decisions for Cadillac.

For example, all brands have powertrain demands. Today they get pooled and ranked and when the resources and capacity run out, the requests at the bottom of the priority list are out of luck.

"They rank them by volume and financial impact," de Nysschen said. "if you put Cadillac into that kind of judgment it will always be compromised because it is about 4% of total business but it is 100% of Cadillac."

Audi, where he worked previously, and Mercedes don't have that problem. "That's why financial accountability is so important."

De Nysschen said having headquarters in New York is equally important and will force the staff to eat, breathe and dream luxury goods.

Moving to a separate building in Detroit would not change the business, culture and processes, he said. Engineering, research and development will stay in Detroit. By 2017 up to 300 people will work in the New York offices that will be ready for the first 130 employees to occupy in May.
 
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