Cadillac is in the midst of its turnaround, and we’ll soon see the first piece of new sheet metal from the brand after GM earmarked $12 billion for its expansion. All of this comes under President Johan de Nysschen‘s watch, and he told WardsAuto in a report published last Friday that things are absolutely on track.
“Judge 2017 in the context of the long-term execution of our strategy,” the executive said.
Although last year was far from a banner year regarding sales figures, the U.S. will play a very important role in profitability. With numerous new vehicles in the pipeline, de Nysschen said global sales will likely reach 600,000 and profitability will increase by 100 percent in the U.S.
The vision is a stark contrast from the present. Cadillac delivered the fewest cars since 2012 last year. However, de Nysschen said there’s more to Cadillac’s success than just sales numbers. “The measurement of success is far more multidimensional than the sales score,” he added.
Cadillac has remained incredibly disciplined over incentive spending, which has lead to a healthy increase in residual values. Brand building is forefront, and average transaction prices have actually climbed 15 percent in the past three years. Even better news on the brand building front, the average buyer age is slowly falling into the mid-50s and out of the geriatric ward.
But, the certified pre-owned program may be the most underrated success at Cadillac. de Nysschen pointed out that Cadillac CPO sales reached 480,000 units. CPO vehicles can be a crucial entry point for buyers and is a chance to build life-long customers.
“The long-term prize is very valuable,” the executive underscored.