Before Robert Ferguson was promoted to head of Global Cadillac, he was General Motors’ top lobbyist in Washington. And due to the circumstances and political pressures from the ignition switch recall, he’s currently back doing lobbyist things, like schmoozing with politicians and getting stuck in traffic. We’re sure his demands are more important than that over there, because it seems that his brief stint as head of Cadillac has been put on hold, according to a Detroit Free Press report. That being the case, it seems that Cadillac is currently a ship without a captain, and that’s not a good thing when sales are on a slight decline compared to last year.
“He was asked to step in on an obviously urgent project there for the CEO,” Cadillac spokesman David Caldwell told The Freep. “How long that goes and how much that continues into the future, I just don’t know.”
That could be interpreted as an indefinite assignment, in which case a new appointment could be needed. Cadillac is also without a current sales and service chief, as Bill Peffer’s departure marks the third leave of the position in two years. Kurt McNeil, GM’s head of U.S. sales operations, has now assumed the role of Peffer’s outgoing position, though it’s expected to be temporary.
But what of a global director for the Cadillac brand? Rumor has it that GM President Dam Ammann will shoulder the added responsibilities on top of his current duties, though nothing has been officially announced.
Comments
The glitz years of big caddies , lincolns and Chrysler ended in the 70’s thereabouts . Acres of chrome , expensive with look at me styling . Sales and numbers of models dropped drastically until recently GM must have thought , lets own this segment , not much big three competition , and we will outperform the Germans . Cadillac introduced real edgy styling , glitzy , but not enough refining as yet to give the cars the same class as the Mercedes and BMW . Frankly , the fundamental marketing research and planning fell short,I believe,in astute understanding of the customers choices being made and competitions models being introduced into the marketplace, where CUVs and SUVs are the big players now . The choices are expanding fast and here’s why . People are getting bigger , weightwise and height . You get down into a car and climb up a bit to get out . This is inconvenient and for some a big turn off . THe CUVs/SUVs offer slide in seating, much more convenient , they sit higher up with better view of the road , and the surroundings . The lift door at the rear gives same level storage of groceries , luggage etc as opposed to lifting up and out of a trunk . Without a trunk to add length to the vehicle you get a shorter compact shape with tighter steering ratio , perfect for daily urban driving to malls , parkades etc and/or work stalls . They are most always offered in AWD which for the climate changing blustery winter driving conditions , is a popular option . Sitting up higher in such a vehicle also gives some nervous types a reassurance that this is or will be the best prudent safer choice to own . Even the LIncoln division of Ford , instead of meeting Cadillac head on in the fancy expensive car market invested in the superb 2014 MKX SUV . Why go after a niche car product that isn’t producing volume sales anymore ? The middle and upper classes are now driving the BMW , Lexus , Acura , Toyota , the list goes on and on , most are conservatively styled and refined . The refinement which is a high priority with automakers today along with a supporting long term warranty is a must . This segment of the population want value for the money spent , reliability and lasting value . The glitzy Caddies now sold , I read that some are beset by squeaks , rattles , noisy engines , recalls and intermittent problems that won’t go away . You don’t get a second chance to make a good first impression . Cadillac is in a tough fight , here’s hoping they sit down and fully and totally get to understand and appreciate what people are buying , why they are buying what they bought and want to buy in their next vehicle . With so many choices of competing vehicles in the marketplace today , they simply cannot afford to be on the outside looking in , the hit and miss approach now is too costly !
I totally agree with most of your position.
I own a 2010 CTS and I love it. I bought it for its looks and performance and comfort. I also owned a 2006 Chevy Colorado, short bed crew cab which I really loved. It was just perfect for my size (5’1″) as a woman who gardens. I will buy another one of these when the 2015 comes out in the fall this year. I can’ complain.
Having said all of this, everybody keeps talking about “changing the culture” of the workers but what about management and the engineers and designers? The bees can only go out and get the honey and bring it back…..They are just bees! People are people and some are good and some are bad workers who want pay but don’t want to work. Some managers want titles, positions and larger pay checks and all the perks. None of us can really have it all and come out fair or on top unless we are cheating somewhere along the way. Performance counts and sells. I know I use to sell cars years ago.
Well this is how I see it.
Cadillac was the standard decades ago and over time was refined down till they became just the entry level of the segment. They offered technology but too often it did not work or was before its time. 8-6-4 anyone?
Then the 80’s hit and they lost all the edge they had with the loss of RWD.
While the cars in the 90’s improved it was still lagging behind but GM could not afford to do much about it.
Now they have the product and I do not know what they expect. The cars are as good as any and they have created a style all their won that is not in your face anymore but not a copy of a Benz.
Now it takes time to earn your place in this segment as just building a better car is not enough. While good marketing may speed it up some it takes time to become a true competitor in this segment. The gains come slow and take time to earn as you can design or build a reputation.
Also the one area that is a great selling point is Image. In this segment one of the things that sells these cars is the what it will do for the image and ego of the owner. Hell any old Chevy and Toyota would do just what they need done it is what for the extra money will this car do for me. What does it say about me and how does it make me look. This is something that is public perception and takes time to earn and place on a car.
Just look back a the history of Benz in this country. While they filtered in slowly over time they were just that odd car with the funny doors in the 50’s distributed by Studebaker. In the 60’s they gained ground and by the 70’s they were the choice of those who wanted to present an image.
BMW was the same as no one knew much in this country about them in the 50’s. In the late 60’s they had a sporty little coupe that was fun to drive but rusted out and was not much for quality. Then in the early and mid 70’s Lutz brought out their new slogan the Ultimate Driving Machine and marketed hard their new image of more upscale cars in this country. Over time in the 80’s they went from odd German car to a place at the table with Benz.
Same for Infinity as they went no where in the first many years with odd styling and nothing really standing out. But over time some tweaks to the styling and to the image it is now moved up but still has room to grow.
Audi was almost a cross of a Volvo image and VW. They were quirky with the FWD and rusted out like a VW. They started to build an image to be set back with the 6000 media attacks. But over the last 20 years they made slow progress and now have a seat at the table in class.
With Cadillac they will have to take the time to get where they are going. Careful marketing and more new products will build credibility and with smart marketing things will change. Anyone thinking this was going to change this fast once they got the first two creditable models was sorely mistaken.
Jaguar is in the same rebuilding process and it will take them some time too. Though they were not down as long as Cadillac they have fallen from grace and just now are purging the old Ford Product.
Lincoln is where Cadillac was in 1990 and have a very long road ahead. They can turn it around but will Ford want to spend the money and the time it will take. There are no short cuts and for now those in power are willing to stick it out. Ford needs this segment as it is the most profitable of all. Even with the lower numbers Cadillac sells it make more money than 100,000 Chevys in one segment.
Luxury cars are the pick up trucks of the car segment.
I am not sure what is in play at GM right now. The changes I think may have a lot to do with the new leadership like in Mark Ruess. Mark is calling the shots here and he can put in who ever he wants. I really do not feel he has been happy with the way things were going and the people who were there and I wonder if he is the one making the calls here. He is a car guy and has his own vision. He needs someone there to transfer his vision to the market and as of right now I so not see that happening.
Cadillac still has work to do as in making the GM engines their own and not just use the same engines that Chevy would pop into a Camaro. While a great engine it is not a Cadillac engine per say. Now with their own dress up and tuning they could make these engine their own just as they did with the TT V6.
Also they need to refine the 4 cylinder too. Great engine in a Chevy but it has a little more noise in the Cadillac than it needs. The NHV is being addressed but we have yet to get to where it needs to be.
Styling and more models will continue to fill the segment. This will help as not everyone wants a ATS and CTS.
The real focus is marketing. They need an edge here and mine that advantage. What it is would garner a mega check from GM as they have yet to find it. Benz has always been quality, BMW has used sportiness. Audi AWD performance what has Cadillac got? Really nothing till now and now with the new cars and coming product they need to find their niche.
Also one area GM could spank BMW and Benz is FWD. While they do not need many FWD they do need a couple smaller models moving forward as all MFG will enter this segment. GM can do better than all of them if needed with their background in FWD. Time to build a car to compete at the entry level that will spank the others. I hate to regress but that is where the segment is moving. The companies like Volvo, BMW and Benz used to market they were only RWD are now all entering FWD.
Also if he is telling them what to do how are those at Cadillac liking to be told what to do? They may not like not getting full say. Either way there is a clash there in leadership that we can only speculate about.
Well said, scott3.
Great history lesson for us car buffs! I’ll still buy GM and not foreign….All they have done is copy off of us . At the car shows here in DC, many Japanese and others almost knocked me over taking pictures of the interior designs and body styling of American cars! It was crazy!
Americans still love our cars!
Produce the Elmiraj now!
Note GM is working on the Coupe but they have stated there has been issues with wheel base. As it is the platform they would need to use does not have the hard points to build it exactly as the show car.
Not sure if they will work this out.
I believe the problems can be whittled down to simply being that the dealers might not know how to sell these things, based on experience, and other experience from some media colleagues. Not ten years ago, these same dealers were selling cars like the DeVille. Cars like the DeVille were familiar to these salesmen and rotating customers. Now you’ve got these same people trying to sell something as opposite as a Cadillac ELR and CTS Vsport. So not only is marketing doing a bang-up job trying to attract German brand snobs, which is no easy task, you’ve got dealers who don’t seem to be keeping up with the product portfolio.
I do agree partly and disagree also.
IMO, I think that there are way too many Cadillac dealers that have a large surplus of supplies greater than demand and there are an alarming number of ’13 models still sitting on dealership lots and it is June 2014. In the joint stores, there were several ’13 models left over.
What Cadillac needs to do is go out to all the dealerships and see the ratio of supply/demand ratio, get rid of most of the Cadillac dealerships in cities, where there not much wealth,that are jointly being sold along side with Chevy, Buick and GMC and keep the sole Cadillac dealerships open for the major populated cities and have a few joint dealerships here and there within ’75 miles for those areas healthy in wealth.
By doing that, you will retain the higher quality sales people that have the drive and passion to sale Cadillac because they love Cadillac. Currently by having mostly Cadillac joint dealerships, a lot of sales people have to try to sale cars to everyone that they may not have interest in particularly he or she like Chevy but don’t care for Cadillac.
It is a win situation for consumer’s but most of them in underperforming towns need to get out of the Cadillac franchise if they still have leftover models from last year.