Detroit’s been quick to criticize Cadillac president Johan de Nysschen and Chief Marketing Officer Uwe Ellinghaus, despite de Nysschen’s new colleague and him having little to do with the majority of the changes at the company. They have been accused of not acknowledging the quality of Cadillac’s products after stating they want to create “a luxury brand that happens to make cars,” a statement which he defended in a recent interview with Forbes.
Ellinghaus knows Cadillac has and needs to continue making competitive products, but the brand’s new cars are some of the best in its history, yet its sales are down nearly six percent so far in 2014, evidence of an image problem, he says. Lambast Ellinghaus’ “luxury brand” dreams if you want, but he’s planning on implementing this mentality throughout the entire company, right down to the dealers, which might just be for the better.
“How can someone (who knows) the industry really deny that automotive can learn so much from other industries when it comes to the retail experience or customer-relationship management? Not just luxury brands (but) even hotels or airlines do a better job in bonding (with) customers and creating touch points,” Ellinghaus told Forbes, addressing Cadillac’s dealer experience, an aspect of the company that will also have to undergo extreme changes if it wishes to grow to the size of other luxury automakers.
“We currently see in our sales performance in the U.S. that even the best products in the world do not sell by themselves. Our cars win awards and have terrific feedback from journalists and customers, but we are not reaching our sales expectations. The reason is the lacking appeal of the Cadillac brand, the lacking relevance of the brand to people’s lifestyles,” Ellinghaus said.
Saying he wants to create a “luxury brand that happens to make cars,” is just Ellinghaus’ way of voicing his vision for the company, as he tries to establish an image for Cadillac which is uniquely different from luxury rivals. Forbes says he’s putting the “finishing touches” on Cadillac’s entirely new brand platform, which will launch the previously announced marketing campaign early next year.
At a time of year when luxury car ATP usually rises.
Sales decreased 5.6 percent to 16,670 units during the first ten months of 2024.
Specifically critical minerals supply chain development.
Scheduled for a Spring 2025 launch.
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Cadillac has an uphill battle to regain the publics trust that the products are some of the best that the division has built .
And it takes time to do that . The move to New York is only an attempt to gather information on what the up and coming customer base is looking for in an automobile . Design and quality are one point of the plan , and price is also a concern . Some of the old customer base that may be returning to trade in their older model to possibly buy the newer product are sometimes shell shocked that it may take $ 6-7,000 ( US dollars ) to purchase the newer model . What Cadillac needs to tell them is the technology engineered into that car is far superior than the older model . The division needs to listen to the new customer as well as the returning ones .
PDT you are correct.
But it even goes much farther than that. Like a football game there are several fronts a team must perform on to really dominate the game. Cadillac has several areas it much master.
Technology much continue to lead.
Quality must continue to improve and not just the real quality but the perceived quality that you see and touch.
Marketing is a major area they have fallen down in and it must be beefed up. If you do not get the story out how do you win hearts and minds? You can build it but you still have to sell it.
Image building is another area that will be on going. This is where the real time takes to gain ground. You have to earn it one new model at a time.
Finally they need to keep GM out of their business. Setting them free as they have done will permit them to do things some old culture people inside GM would fight them on. If GM lets them go and be autonomous they will prosper more than if they stay and have products approved by the same board that approves the new Cruze and pick up trucks. Not that there is anything wrong with those products but they have a whole different criteria of need than what Cadillac needs.
As for the customers. Who says Cadillac has been selling to the right demographic? At one time world leaders of industry and business only drove Cadillac' and post 1959 more and more the common car buyer crept in. While that is good for production numbers it hurts image.
You want your corporation executive to own cars of standard and high quality not your Avon Lady. Roger Penske driving your car has much more effect on your image than Aunt Bea. Unless Aunt Bea was a retired executive or person of means. Snobby yes but that is what makes it desirable. If you own a vehicle not meant for everyone it sends a signal you are part of that segment that can afford it. Or a drug dealer.
You don't build a $100,000 house in Rancho Santa Fe. You have to add a few more Zero's to be taken seriously there. Look it up if you do not know where it is.
Too vague, Scott. This isn't football, it's manufacturing products that people must want. So first and foremost, you need to operate in the market environment that exists today. Sadly, the middle class is shrinking and there's a limited number of billionaires in the world. Cadillac has no choice but to position itself adjacent to Buick with the bulk of its models and have no more than a few super high end models for the truly rich.
"Technology" is far too commonly misinterpreted. Cadillacs need to offer quality and value in a timeless classic package. Somewhere along the way everyone got confused as Caddy attempted to appeal to vastly different groups: 1) the Escalade gas guzzler super-bling, low quality crowd to which chrome and gold is much more important than quality;
2) the CTS-V group of former european driver-oriented sporty touring car owners that care more about handling, manual transmissions, and track times than bling
3) the older clientele with significant money who want to be driven in complete comfort, who demand impeccable old-world craftsmanship and don't want to deal with electronic junk
That is already an eccentric marketing message for one brand, but Cadillac didn't stop there. It continuted to:
4. halfheartedly offered a large wagon for active families who would otherwise be enjoying the Audi Allroad or Subaru Outback.
5. Rolled out an expensive electric car apparently to appeal to people who are rich but don't like gasoline.
Is there any surprise that the brand identity has now been totally lost? What universal thing can the objective person identify as a key, unique Cadillac trait?
Unfortunately, the answer is: UGLINESS. Cadillac took the "in-your-face" styling option like BMW did in an attempt to be noticed. The mistake is clearly limiting brand appeal.
Technically, maybe Cadillac could build several platforms & options packages to serve all the strongly different markets that it is now attempting to bridge, but the Welburn jarring angular "Art & Science" styling theme drove many would-be customers directly to Audi or Lexus -- brands that offer refinement, quality, and classy styling.
I propose that Cadillac fix its ugly styling before wasting money on hotel-like "customer relationship" programs.