While General Motors remains supportively optimistic of Johan de Nysschen’s recent decision to relocate some Cadillac staff to The Big Apple, The Detroit News’ Daniel Howes numbers among a growing quantity of critics who are having none of it.
Howes posits that American luxury brands — such as Cadillac — fail next to the luxury car brands of Germany and Japan “thanks to a record of shifting management priorities, impatient capital, recurring business crises and an allergy to long-term commitment.” He compares the move to Ford’s decision in 1999 to relocate Lincoln-Mercury to southern California, which yielded no observable advantage, and certainly didn’t last very long.
For all the vitriol that Howes spouts toward Ford, Lincoln, General Motors, Cadillac — basically everyone — he has a point. “Ulrich Bez, a former Porsche engineer who headed Aston Martin for 13 years, put it this way in a discussion we had years ago: great brands and the products that define them are built over decades, not single product cycles — and Detroit’s experience with Cadillac and Lincoln is proving him right.”
Only, Cadillac already has an impressive field of products, and hardly a critic in the world can disagree. These products will continue to originate here in Detroit even after Cadillac’s move, which itself really only impacts Cadillac’s marketing. And given that it’s Cadillac’s marketing, not its products, that is the contributing force behind its “sucking the fumes of its competitors” as he says, we rather think he’s missed the mark.
At the very least, we can all object to his calling his hometown of Detroit a “provincial Midwest backwater.” Maybe he was just grumpy.
Comments
An excellent point regarding Cadillac’s marketing. The product is nearly where it needs to be (I give them one more generation), but they aren’t doing a good job of convincing people to jump ship from other brands (or even convincing existing customers of the added value in the new cars that makes them worth prices on par with German rivals).
Moving Cadillac to NYC will do NOTHING, but cost GM money. Money they can put to good use with the next generation of cars.
I think there is a method to Johan De Nysschen’s madness and am willing to give him the benefit of the doubt.
I agree. de Nysschen knows exactly what he’s doing. Moving to New York isn’t being done to drum up sales: nobody is expecting Cadillac sales on Manhattan to jump after news of the move.
The move is for the 50 marketing and product planners to become better associated with North America’s (arguably, the world’s) largest luxury consumer market.
Get their fingers deep into the soil, and live and breathe among the top tier of NYC. Put their fingers on the pulse of the luxury consumer and find out what it is that makes them tick, what it is they demand, what they want of the world, and how they live. It’s getting Cadillac’s primary decision makers out of Detroit and getting them right into the luxury epicentre of the world. If Cadillac (and by extension GM) wants to know how the top 1% live, their execs need to be centred around where the wealthy hang out, and those execs need to feverishly take notes.
Cadillac isn’t really selling cars. They are selling a lifestyle; Cadillac’s take on what it means to design, build, and offer a luxury car, and offer this car to people who live a life of hedonism and luxury.
This isn’t about America vs. Germany vs. Japan, and Cadillac wasn’t created to foster that mentality. This is about offering a product that enriches the lives of people who are habitually accustomed to enjoying things that few people can ever have: the top social tier.
Luxury goods are bought on emotion, not value for money. There is no better way for GM to establish an emotional attachment with the luxury consumer than to study them and their interests in NYC. In turn, GM will court them with only the best and most luxurious cars they’ve ever built. It won’t matter if it’s named CT4 or CT6 or XT5. It will matter only that it is a Cadillac.
As a not-so-proud new owner of a 2014 CTS VSport Premium, I feel that the move is a huge financial mistake on GM’s part. Those dollars put toward the move would be FAR BETTER SPENT on improving the existing product. Come on, GM, I’ve only had this car for three months and already there have been FOUR recalls issued! Not only that, but my car is now exhibiting intermittent, bizarre transmission issues after only 3,000 miles. Needless to say, I am kicking myself for ditching plans to go European (BMW or Audi) and doing the “honorable thing” by buying American…
I feel you, i am in the same boat, bought mine in june and have recieved 4 recall notice’s so far and it chaps my ass, because it’s my very first cadillac that i thought i earned and i work for g.m. sad.
Ouch! Only 3000 miles and you’re experiencing transmission issues, I’m sorry to hear that. This is totally unbecoming of a company high on the safety and quality turnaround. I’ll applaud GM for the blitzkrieg approach towards dealing with quality issues, but hearing these things are quite discouraging…. I hope you’re still enjoying your CTS Vsport at least, but it’s totally understandable if you’ve decided to jump ship.
I don’t believe the move to NYC will hurt the Cadillac brand; I agree with Grawdaddy in that regard, as it can provide a better perspective of what luxury consumers want. But it won’t really help them much either, as the brand will always be associated with Detroit; that either means good or bad perception.
For those pointing to marketing you are correct. This is more about how they will do business. This is about who they will work with and how they will work with them.
NYC is the marketing capital of the world and it is easier to get a car to pick up your marketing accunt manage and have him drop by this afternoon than to wait for him to get a flight to Detroit.
Also if you are not happy with something you can have your C6 driver take you across town and you can ream him in person right now.
Also the other deals that need to be done can all be done same day face to face in NYC.
The fact is Detroit is no longer the hub for Automotive marketing and the small Cadillac main office can be in NYC so easy. Also GM already has a presents there just off Central Parks SE corner. They have a nice building there.
I like this guy and he has been saying all the right stuff. Now he speaks of Cadillac’s own engines. This is very key.
Also I said in the name debate that the C6 may not be the highest car. Well he came out today and said he could see two more larger cars, two sports cars and two CUV/SUV models. This is what they need to move too. It is not going to happen over night but GM needs to commit to this plan if they ever think they will be a segment brand leader.
All of this is doable but it will take time and investment. This s the first person to have the balls to say and do what is needed and for once GM is listening. I had been holding out for their own version of a Chevy as I never though anyone would do the right thing.
I don’t give a flyin’ f**k what Johan does! It all comes down to RESULTS! So we all can bitch about his chess moves but not anyone one of us has contributed to his cause! I can’t wait to see what happens! Johan… YOU DO YOU!!!
I support the move to NYC. I think it could be beneficial for Cadillac as a whole.
In plenty of upscale and influential cities, all I see are Mercedes Benz, BMW, Audi, Lexus, Land Rover and Escalade. That needs to change and I see Cadillac to be common in most influential cities and upscale towns in ten years when we see more models in the future. Today’s Cadillacs are excellent but they are not common in the high society except for the Escalade. Where I am at, I see plenty of Escalades but see some ATS, XTS, SRX and CTS in certain rich areas. It is time for Cadillac to take back being dominant and show the imports and society who’s boss. Cadillacs were a common site in influential areas when they were dominant before the imports took over due to Cadillac’s and GM’s mismanagement of products.
Before anyone complains about the cost of moving. Do you realize how few people are involved with the move. This is not like moving the staff of the GM building in Detroit as this is the move of mostly the administration staff and the number are low. They can locate in a building there or even in the GM building someplace all on one floor.
The administration of GM is not as large anymore.
Much of the design and engineering will remain in Warren. It is a little difficult to test cars in Manhattan. LOL!
As for recalls and issued the Germans have them too. Don’t fool yourself into thinking they don’t.