Cadillac’s $12 Billion Renewal Plan
April 10, 2015
GM President Dan Ammann put Johan de Nysschen at the helm of Cadillac last year, and the changes that are set to play out in within the next five years will cost GM a total of $12 billion. If you’re aspiring to an automotive career, you’d be interested to know that even though luxury cars make up just 10 percent of the 100 million cars sold globally every year, they account for 50 percent of the profits.
GM will be counting on Cadillac to drive profits in the next decade, since tightening fuel economy standards in the U.S. could push up production costs on trucks which are responsible for much of the company’s current sales margins.
De Nysschen says that “The company needs to capture its rightful share of the profits available in the global luxury market.” Let’s take a look at how he plans to try and do just that.
New Location, New Vision
De Nysschen insisted on moving Cadillac out of Detroit in order to give product planners a fresh way of looking at things. Now, 40 people are in New York working in product planning and development, advertising and marketing along with a few dedicated engineers and designers. De Nysschen expects the staff to grow to 150 people by the end of the year.
The new direction means an eventual ramp-up on production, which is promising for Cadillac lovers hoping to pursue an auto career.
Making Cadillac a serious competitor to German luxury brands is no small task, but keep in mind that South African born Johan de Nysschen is a former exec at Audi and Infinity.
If you’re looking to become a mechanic, you may already know that Cadillac currently sells six models, competing against 11 from Audi and 13 from BMW. By 2020, Cadillac will be adding three more SUVs along with the CT6 sedan that made its debut at this year’s New York International Auto Show. There are plans to revamp four other models in the lineup. A bigger Cadillac that will be even larger than the CT6 is also in the works, says de Nysschen.
The CT6 reflects the brand’s new direction. Whereas some German luxury sedans have gotten bigger and heavier, the CT6 – hitting the streets in 2016 – will be the size of the BMW 7 Series flagship and as light as a 5 Series.
Plug-in Hybrids are on the Way
Former longtime employee at BMW Uwe Ellinghaus was recently made Cadillac’s chief marketing officer. He states that Cadillac has plans to incorporate a version of the Chevy Volt’s plug-in hybrid system into many of its cars. The brand already has the ELR, which uses the Volt’s drive system, but Ellinghaus promises that there’s much more on the way.
What changes to the Cadillac brand are you most excited to see take place?
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