In 2013, Cadillac sold 250,830 vehicles, way less than the seven-figure numbers enjoyed by BMW, Audi, and Mercedes-Benz. Newly-appointed Cadillac President Johan de Nysschen hopes to double Cadillac sales by 2020 via an aggressive product offensive and an improved dealer experience, he revealed during the Barclays Global Automotive Conference.
de Nysschen showed conference attendees a slide of 12 different Cadillac models covering a wide range of segments. According to The Detroit News, these included a small luxury car, a convertible, a compact and midsize car, two other compact/mid-size cars, a small SUV, a compact SUV, two midsize luxury SUVs, and the Escalade.
Cadillac is hoping a portfolio expansion will help it sell 500,000 units annually by 2020. de Nysschen did, however, recognize that sales could stay flat for the next three years or so, as the company ensures incentives stay down in an attempt to keep average transaction prices high. Though October 2014, Cadillac sales are down 4.6 percent in the U.S.
“We’re really going to prioritize the quality of business over the quantity of the business,” de Nysschen said. “It’s very important that we build a solid foundation from which to grow. And if it means in the short-term we lose market share and we lose volume, then so be it.”
Also crucial to growing sales is a revamp of the dealer experience. Many Cadillac dealers aren’t used to treating customers the way a BMW, Mercedes-Benz, or Audi dealer might. To remedy this, de Nysschen is “reorganizing” the dealer network and working on a plan to build “boutique stores.” A new “performance driven” dealer model will also reward stores with new sales bonuses.