Cadillac President Johan de Nysschen is likely afforded very little sleep these days, as anyone and everyone in the media seems to want an explanation for the Cadillac move to New York City, and everything else up his sleeve.
Most recently, Cadillac’s dear leader sat down with Fox Business to discuss the relocation to Manhattan’s trendy SoHo district.
Asked for the motivation behind the move, the former head of the Infiniti luxury brand says that it’s “for [Cadillac] to get focus on the premium and luxury segments of the market. There’s a different rulebook that works at the top end of the market.”
De Nysschen goes on to say, “You know, the issue is not at all about Michigan. It’s about creating a geographic separation – as well as I think a psychological separation – between the new Cadillac unit and the parent company… Geographic separation forces you to change the way you do business, and if you want to be in the luxury business, the epitome of luxury consumption, I think, is New York City.”
De Nysschen’s answers here are typical for what we’ve heard from the Cadillac President in the past, although perhaps a little more succinctly stated. The interviewer goes on to ask about how de Nysschen can “make Cadillac cool again,” to which he replies that the brand transformation is already underway.
Doubtless, de Nysschen will still have his (mostly) Detroit-based dissidents who decry the move as nothing short of a malicious abandonment of the state of Michigan. But we think that given enough time, the HQ move to NYC may very well prove de Nysschen to be a capable, foresighted leader.
You can watch the entire interview below:
Comments
“You don’t measures success in (the) luxury business by volume, but measure it by price point.”
I mean this should be a given. It’s just a shame that it’s taken GM some 50 years to figure it out.
I like this guy. He says the right things an things no one has said at GM since the old days of Bill Mitchell and Harley Earl. H is a strong leader and should make an impact as he already has made gains for Cadillac that no one else could for years.
Imagine just 5 years ago if Lutz had asked for Cadillac engines of their own? Even he would have been show the door on that one.
GM needs to set Cadillac apart and stop putting in the same engines as Chevy used in pick up trucks and Malibu’s. While they are great engines they are not Cadillac. Hell my Malibu has the same engine as is found in the older CTS in the 3.6. and I only paid $20K for it. My HHR has the same Sun Roof as the older CTS.
Cadillac is making gains and we will see this continue. I just don’t get where the media ands even some here think Cadillac is just going to be cool and hip with the addition on two new models. To repair the damaged image it will take time and a series of model that will improve the image with each and every introduction. A solid image is like a brick wall and has to be build a brick or model at a time.
BMW did not become cool with only one model in one year. It took a series of models starting in the late 60’s and resulted in them becoming the company they are seen today in the early to mid 80’s, Before that they were just seen as an expensive car the guy down the street that wore a cap drove and you made fun of him because he pays too much to get it serviced.
If you review the long term review of the ATS that was posted here from I believe Motor Trend they praised the ATS and even the Cue. They say the car is right in the market segment and is does what it needs to do. Now Cadillac will do like BMW, Porsche and Benz and continue to refine and redefine these packages along with adding new models.
Lets face it the Germans have been making these cars for years and really they are pretty much the same style and type of car they have been making but they have distilled them to the highest level they can and added technology along the way. To be honest for the ATS and CTS to be as competitive as they are in this first all new platform is amazing and It all bodes well for the coming product.
I really think many who keep looking for the pivotal flagship will be surprised. While for a long time the C6 was touted at the flagship I believe Johan that he felt it was not good enough. While the C6 will be a impressive car we will see even better. That is what has me excited no longer are we being give good enough as told it is the best. We will see better than the rest in the future for once.
I just pray that GM keeps out of his way and lets him so what he needs to do.
The unsaid fact is the bean counters and negative people on the rebirth of Cadillac are no in NYC and that may be the biggest unsaid factor for the move.
What will be so funny is when the CT6 is rated near or top of the standard wheelbase competition in comparison tests, Cadillac will tell the critics that we have a car a lot better than the CT6 in the future.
That will be a big slap in the face to the European competition and will make them worry.
They did have the northstar 5 year ago. I’m curious to see if they do dual over head to separate them selves evenmore. The small block GM is a great engine to want to replace. I’d hope they wouldn’t call it northstar again tho. Maybe do something like the Coyote. I am a Mod motor fan boy to be honest. The LS is pretty similar to the old SBF, it wouldn’t hurt to do it again.
Sloan believed in innovating not following. Whether it was the Model T or Packard, GM got creative. Even in the depths of the 1930s Cadillac had two totally different V16 engines yet used the LaSalle to help the dealers survive. Cadillac was not saddled with cheap Packard 120s and sixes that dragged their opposition’s reputation down while not having a V16 to elevate it.
So do not follow the Germans that produce complex vehicles that dive in value when the warranty expires because owners are too scared to maintain them. Sure affluent owners can eat high depreciation or maintenance costs but sooner or later they will realize they are getting hosed. Cadillac needs to develop a strategy round these deficiencies in the German makes.
I think too many mistake Cadillac for going to the place the Germans are. The reality is the Germans are just where the market is.
Cadillac can and will join this area of the market and if they can make the right moves it will be the Cadillac segment not the German segment.
The only reason that it is the Germen place now is because they got there first.
No matter what you do expensive complex cars cost money to buy, cost money to maintain and will lose more money than most.
The only way to prevent that is to do like Lincoln make a cheaper car based on a Taurus and still lose resale but less since you paid less.
The segment here does not care much about resale values as if you can afford it in the first place you don’t care about lost value. Most people worried that much about money would just buy the Impala in the first place. This segment is about ego and image and these people are willing to lose money to gain these.
Smart money people do not drive 7 series cars if they are worried about money. Some I have seen drive a Golf. Now if money is not an issue they buy it and have little worry about depreciation as they can absorb it.
You can’t think of buyers in this class as Chevy buyers. They do things differently and think differently. If the money is an issue they bought the wrong car to start with.
All good comments. However, just think about how Infinity has done in this market. How cool is Infinity?
They must be cooler than Cadillac as they have a younger buyer base.
They too are like Cadillac and are turning things around as they never did have a hold in the market. They were always over shadowed by Lexus.
Good story and interview. I think this guy is going to be good for Cadillac.
I will always say, Cadillac already has the technology and luxury
Do miss a good number of engines; because the number of horses and their possible use is also important.
A person who buys an ATS is not a rich person and also want low fuel consumption; The same thing happens with CTS.
When a person can buy a CT6 future, maybe he does not care much gasoline
Cadillac engine entry should be a 180-200 hp NA, luxurious and nice and low fuel consumption car, that’s the great global concern, gasoline
In Spain it is where I live, they sell many cars brand Mercedes BMW and Audi, and most of those cars have sold engine low power and low consumption
Cadillac should focus their efforts in this regard.
Regards from Spain
Every day you go, I much prefer Cadillac, United States makes wonderful cars
It seems like the Cadillac offerings of late are very good performers with good luxury and not ludicrously expensive to buy and maintain. I think one major issue is the bland styling. Back in the day (60s and early to mid 70s) many of the models I’ve seen have been just kool to look at and stood out from the crowd. I’m sure these talented designers can come up with something good looking without going back to tail fins. 🙂
Also I hope the move up market does not occur for only its own sake and not supported by better quality and performance.
Owners of these high priced luxury buyers don’t worry about resale value ?? This value is part of the aura of highly sought after luxury brands .the first is refinement , plain and simple . You can literally take them to the bank , the quality of fit and finish is job one . The image is built over years of design improvements to chassis , drivetrains , parts selections and usually understated presentation . Cadillac’s reputation for quality and refinement seems to have taken a back seat to what looks like an urgent need to throw into the mix a host of new WOW products every couple of years …refinement be damned , perhaps . How many recalls have been issued on Cadillac , if I’m not mistaken the SRX had 14 recalls for 2014 plus one stop/sell order . Cadillac shouldn’t have gone to New York , should have sent them all to Shanghai , they seem to be offering slightly better Caddie designs and I’m sure the quality/refinement will be job one. They have the biggest market in the world for luxury cars and are demanding in quality/refinement !
Yes resale is not a strong deal in this segment.
First off few cars have any decent resale and see significant depreciation the day you leave the dealer. New cars are the worth investment you can make and the more expensive the more they decline.
Second the more advanced technically they are the more expensive they are to fix that further speeds their decline. It is cheaper to buy these cars keep them 1-3 years and move on which is what most people in this class do. Those who do not move on generally over bought.
Yes there are acceptation like a Ferrari LaFerrari or Bugatti but these are very limited models that in come cases even if you have the money they will not sell it to you unless you are approved as in the case of the LaFerrari.
Either way resale is not king in these cars but the MFG do not care so much as that is not their prime customer as they sell new cars to people generally flush with money.
This is also why I see a dealer lot full of Jag’s, Audi’s, Benz’s BMW etc all for $2500-4500 dollars on the way to work. We have called it the lot of misfit cars as they are all models just old enough to be too expensive to repair vs. what they are worth. It is a shame as some of them the bodies and interior are still in good shape.
Cadillac quality is on par with anything out there right now. They have been under a microscope with the GM recalls but you will find the others have had nearly the same results if not even worse.
I still do not believe that moving to New York is what is needed to help Cadillac . Its going to be expensive and will take probably a decade to see any change . Couldn’t they just move to another tower at the Reniasaunce Center .? And what about the focus groups they hire to give input on upcoming models . What will change Cadillac is producing QUALITY car and SUV’s . And the price point matters to most people . Maybe not the 1% group , but to the guy or gal that feels they have finnnaly made it and wants to reward themselves , price matters . Seriously is the public going to spend 70g’s for a loaded CTS or go to the German automakers and buy a status symbol for 20g’s cheaper , like an Audi A4 or a Mercedes Eor C class . And no matter what Caddy you buy you are going to get the same infotaiment – CUE . That needs to change . From the little ATS up to the Escalade , same system .
I want Cadillac to be ” The best in the world ” , build quality cars at a decent price point and put some style back into the design . Forget CAD CAM and get the pen and paper and do it like it was done in the 50’s with designers that had a vision and not a degree in computer science .