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GM to Spend $12 Billion to Fund New Cadillac Models by 2020
Bloomberg
By: David Welch
January 12, 2015


General Motors Co., working to revive its slumping Cadillac luxury brand, plans to spend $12 billion to develop eight new models by 2020 and two more in the next decade, the brand’s chief said.

Cadillac will focus on the so-called crossover sport utility vehicle segment, Johan de Nysschen said today at the Detroit auto show. Cadillac currently has just one, the SRX, while rival BMW has five and Audi has three in its lineup. De Nysschen said GM will add three SUVs as part of the expansion.

GM is spending on the brand to fund a new-car renaissance at Cadillac, whose U.S. sales fell 6.5 percent last year. The brand does about half of what rivals BMW AG and Mercedes-Benz sell in the U.S. Luxury SUVs is one area where Cadillac is lagging, de Nysschen said.

Cadillac will add two SUVs below the size of the SRX and one above it. GM, based in Detroit, is also planning a large flagship car for Cadillac. There is no immediate plan for a new ELR, which is a plug-in hybrid that runs using an electric drive system similar to the Chevrolet Volt. Cadillac would also like an all-electric car, but nothing is planned yet.

Cadillac is also planning a large, prestige sedan that will sit above the CT6 sedan, which goes on sale this year. Since the CT6 is close in size to a BMW 7-series, the future sedan should serve as a style showpiece for the brand, said Uwe Ellinghaus, chief marketing officer for Cadillac.

Full article available at link.
 

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Discussion Starter · #5 ·
This is great and all, but I have to ask, is Cadillac going to pay the company back when (if...) it makes the money back? They're now a separate business unit, so one would assume they're responsible for funding their own projects. Is this a "loan" of some sort?
 

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Cadillac will add two SUVs below the size of the SRX and one above it.
Cadillac is also planning a large, prestige sedan that will sit above the CT6 sedan, which goes on sale this year. Since the CT6 is close in size to a BMW 7-series, the future sedan should serve as a style showpiece for the brand, said Uwe Ellinghaus, chief marketing officer for Cadillac.
He added that there is a “high probability of a car below the ATS.”
So... a full lineup basically, plus some mysteries.

* Sub-Sub-SRX
* Sub-SRX
SRX
* Super-SRX
Escalade

* Sub-ATS
ATS
CTS
CT6
* CT8

5 cars suggested in the article, 5 more planned and undiscussed unless they're counting redesigns.


SRX is being shown today? No leaks? What?

Cadillac will focus on the so-called crossover sport utility vehicle segment, Johan de Nysschen said today at the Detroit auto show. Cadillac currently has just one, the SRX, while rival BMW has five and Audi has three in its lineup. De Nysschen said GM will add three SUVs as part of the expansion.
“We will not go to Europe until we are strong and we are not yet strong enough,” Ellinghaus said.
Probably a good idea. Wonder if he figured that out on his own?
 

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This is great and all, but I have to ask, is Cadillac going to pay the company back when it makes the money back? They're now a separate business unit, so one would assume they're responsible for funding their own projects. Is this a "loan" of some sort?
They're not a separate business unit yet for a few years. It's an investment... by GM. In one of its brands.

Cadillac is operating under its own control not as an outside company but as a function within General Motors because it's a necessity to operate outside of GM. What is right for Chevrolet, Buick, and GMC is not inherently right for Cadillac.
 

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Discussion Starter · #8 ·
If they're adding two below SRX (XT5), then it would probably be one that's GLA sized, another one that's GLC sized (think X3 sized), and then something larger (****ing Lambda).
 

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They're not a separate business unit yet for a few years. It's an investment... by GM. In one of its brands.

Cadillac is operating under its own control not as an outside company but as a function within General Motors because it's a necessity to operate outside of GM. What is right for Chevrolet, Buick, and GMC is not inherently right for Cadillac.
http://media.cadillac.com/media/us/.../Pages/news/us/en/2014/Sep/0923-cadillac.html

I'm with you. Cadillac should (and is) being run differently. Cadillac needed to change, and has changed. What hasn't changed is money. If Cadillac continues to be a money loser for GM, do you think they're going to continue to fund them like they are now?

They said they were going to become a separate business unit. If Cadillac sales (and profits) continue to fall, don't expect them to keep throwing money at them. They want to see a positive ROI, not a black hole.

So like I asked, is Cadillac paying the money back? Or is it just a hand out?

Just imagine what Buick or GMC could do with $12,000,000,000...
 

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Maybe for 12 Billion bananas GM would be better off launching a new brand of luxury cars and starting fresh. Maybe bring back LaSalle and position them above Cadillac this time...
 

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General Motors Co., working to revive its slumping Cadillac luxury brand, plans to spend $12 billion to develop eight new models by 2020 and two more in the next decade, the brand’s chief said.
Sounds like an appropriate amount... Until you realize Audi has upped its investment to €24B for 5 years (2020) -- roughly $29B.

Cadillac will focus on the so-called crossover sport utility vehicle segment, Johan de Nysschen said today at the Detroit auto show. Cadillac currently has just one, the SRX, while rival BMW has five and Audi has three in its lineup. De Nysschen said GM will add three SUVs as part of the expansion.
Mercedes has GLA, GLC, GLE, GLE Coupe, GL, G.
BMW has X1, X3, X5, X6, and X7 coming.
Audi has Q1 coming, Q3, Q5, and Q7. As well as AllRoad.

Cadillac will add two SUVs below the size of the SRX and one above it.
Perfect.


GM, based in Detroit, is also planning a large flagship car for Cadillac. There is no immediate plan for a new ELR, which is a plug-in hybrid that runs using an electric drive system similar to the Chevrolet Volt. Cadillac would also like an all-electric car, but nothing is planned yet.
No all-electric car being planned yet, that means Cadillac will be behind the curve when Model 3 launches.

Cadillac is also planning a large, prestige sedan that will sit above the CT6 sedan, which goes on sale this year. Since the CT6 is close in size to a BMW 7-series, the future sedan should serve as a style showpiece for the brand, said Uwe Ellinghaus, chief marketing officer for Cadillac.
Cadillac needs to decide how to position the CT6, since it's only sized like the SWB versions of the flagships.
 

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Cadillac should (and is) being run differently. Cadillac needed to change, and has changed. What hasn't changed is money. If Cadillac continues to be a money loser for GM, do you think they're going to continue to fund them like they are now?
They said they were going to become a separate business unit. If Cadillac sales (and profits) continue to fall, don't expect them to keep throwing money at them.
Please link us to the internal, unreleased, (nonexistent) Cadillac-specific balance sheet you saw that supports your claim that Cadillac is posting a net loss!
No doubt the "falling profits" will be reflected there, also. Can't wait.

Cadillac is NOT nor will be an independent make. They are separating on an administration/ planning/ engineering basis, NOT a financial one.
This move ("something I have been talking about for 43 years on these boards" :rolleyes: ) harkens back to when all GM Divisions had largely autonomous operating budgets & departments, back when Cadillac dominated the domestic luxury segment. I hope they truly 'cut the apron strings' with Corporate and gain their own head. With the right people, Cadillac could really soar.
 

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I hope it did, but what's the larger-than-SRX going to be? I have a feeling it'll be a Lambda...
With any luck it'll be Envoy sized... ;)
 
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If they're adding two below SRX (XT5), then it would probably be one that's GLA sized, another one that's GLC sized (think X3 sized), and then something larger (****ing Lambda).
Wow. Or Omega. Take a chill pill.

http://media.cadillac.com/media/us/.../Pages/news/us/en/2014/Sep/0923-cadillac.html

I'm with you. Cadillac should (and is) being run differently. Cadillac needed to change, and has changed. What hasn't changed is money. If Cadillac continues to be a money loser for GM, do you think they're going to continue to fund them like they are now?

They said they were going to become a separate business unit. If Cadillac sales (and profits) continue to fall, don't expect them to keep throwing money at them. They want to see a positive ROI, not a black hole.

So like I asked, is Cadillac paying the money back? Or is it just a hand out?
It's not a handout. It's an investment. Continuing to ask the same question makes me assume you're trolling.

It's been... 4 months? since the press release. Since then, absolutely nothing has changed regarding platforms, engines, or anything else. We haven't even received a new model conceived entirely under new management and WON'T until at least after CT6.

I know that you know it takes more than 4 months to put anything in effect to change anything... and so, I will assume you are being a troll.

Just imagine what Buick or GMC could do with $12,000,000,000...
Squander in on a lineup that would achieve the same returns with less money?

Buick and GMC can only go so high. Cadillac can go higher and is currently grossly underutilized, not unlike Buick and GMC, but with a significantly less healthy business model and brand.

Transformations take money. If successful, it will pay off in spades. If unsuccessful (which it won't be, because Cadillac doesn't have that option), businesses take risks all the time. It's a gamble. The possibility of failure is there, but it always is.

It's chump change to what Audi plan on spending.
I thought the same. What is it up to? $18b?
 
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