Editor’s note: Cadillac President Johan de Nysschen has replied to the letter. Scroll down the comments section to see his comment.
This article is part of the GM Authority Mailbag series, where the GM Authority Crew features and replies to your questions, comments, and observations.
The following comes to us from Jeff T.
All my life, my Dad bled GM. Most of his friends, and a huge portion of our family worked at “the motors”. Fiercely loyal people. It runs off. Consequently, most of my cars have been GM.
When the bankruptcy hit I worried big time for my Brother and Wife in Oshawa. My cousins and many friends in the motors. It was then I started to really follow the industry. Worrying about their jobs, and pensions got me very interested in the General’s state. That is when I found your excellent site. I am at it 2-3 times a week. I also get the sales charts every month from the world over. Go GM!
When I found out Cadillac was making a 3 Series fighter I was so exited! I followed the news on your site constantly. And when it came out I got a loaded “Luxury” model coming in a little over $51K here in Canada. We were so excited. I posted my keys on Facebook and immediately the jokes started. “But how will you turn corners?” “How old are you again?” “Are you retiring?” etc etc. But I fended them all off with articles etc. It was the start of my being a self proclaimed Brand Ambassador.
Overall, we LOVE our car. There are 22 homes on my street. There are 4 3 series, 3 C-Class, 3 Audis, etc We stand out. I enjoyed taking friends for a spin. Watching them change their thinking. But I would have to say, after making such an awesome car, GM does some absolutely stupid things. The first day after driving my car to the gym I noticed I had no DRL LED’s. They are only offered on the swivel light package. I was so excited and nervous about getting my new ride I missed that part. I was not alone. Dozens of new owners had the same experience over at cadillac forums. Stupid me. But it bugged the hell out of me.
When you see a Mercedes C-Class, A4, etc coming up the road, 90% or more have some really cool LEDs. They scream “Hey, something exceptional is coming up the road!”. Mine could be a Malibu. As nice as it looks, not putting these on even the base ATS was a stupid move. If they want to change peoples’ minds, they need to stand out. Most ATS’s I see do not have them. Wasted opportunity. Especially on my 50k plus Luxury model.
But I still loved my car, my first true luxury car. Then the issues started. There was a small engine thing, followed by 2 months at the dealer. Yes, TWO months where the steering locked in a busy corner, the engine shut down, etc. They eventually found a cylinder head issue. Not long after a major oil leak all over the driveway and a funky noise in the tranny. CUE acting up, electronic issues meant another 2 1/2 weeks in the shop!
Around that time I took the time to write and mail a letter to Johan de Nysschen, the President [you can find it below]! The letter was more of a positive” I love your brand and your direction” “Here are some ideas I think would help in attracting younger buyers like myself”, etc.
After over a month from mailing it GM Customer service contacted me. A disinterested rep informed me the head office never read it, but forwarded it to GM Canada. She had not read the letter. You see, I did her job years back. I was a cust serv rep at GM for over a year. Nothing I took the time to write will reach anyone. It was a complete waste of time and postage.
Jeff and his wife in the Cadillac ATS. Sweet pic, Jeff!
I know how desperate GM is to get the demo age lower with Cadillac. 59 in the USA? God knows here in Canada. I can tell you with absolute certainty that myself and certainly my wife are the youngest ATS drivers we have seen in Toronto. Every time my Wife drives the car I know she helps change perceptions. I retweet Cadillac tweets, like Facebook posts, wear a Cadillac hat to the GM. The best thing. When our car was away in the shop, we told our neighbours it was getting fixed from an accident. I did not want them to know about the problem because it tarnished the brand, and also found it embarrassing. My good friend wanted one after driving mine, but the Wife vetoed it: “not spending all that money for an old mans car”.
There is tonnes of work to do to change that. They had awesome customers in us. I did not complain when the last time the car broke, the dealer gave me a bloody SONIC saying they did not have anything else available. A SONIC… I still got excited about Cadillac news on your site. But as silly as it sounds, the fact that Cadillac HQ just forwarded my letter to a cust serv rep who could hardly wait to get off the phone may have been the last straw.
We were seriously looking at purchasing the ATS-V in the spring. But after almost 2 1/2 months in the shop etc and the above I think I will get more really “cache” driving the real thing instead of showing up in the under dog.
Awesome site though.
Jeff
Hey Jeff,
Thank you so much for sending in this letter and for being a loyal reader of GM Authority. We truly appreciate it.
We entirely agree with you about the Cadillac ATS and its shortcomings on the standard equipment side. Yes, the car itself is stellar: beautifully-designed and a gem to drive. But the way its options are packaged has often left us scratching our heads in bewilderment.
Your point of including the gorgeous LED Daytime Running Lights with HID headlamps on every single model is spot on, in our opinion. Indeed, Cadillac has its work cut out for it: to change consumer perception of its brand and its products in order to grow sales.
In being the challenger, Cadillac needs to do many things better than the competition. So while the standard lights work well and look ok, it would be worth it for Caddy to take it to the well-established BMW, Mercedes, Audi, and Lexus by including such a noticeable and beautiful feature as the LED-based DRLs and HIDs on every single model, no matter the trim level. After all, it would be a great way to attract the attention of other drivers to the vehicle and to perform the brand-building Cadillac so desperately needs. Sure, it might cost a little more and decrease per-unit profitability, but we have a feeling that it will be quite worth it in the long run.
Another element of the ATS (and CTS) that really ticks us off is the fact that only the driver-side outside rearview mirror is auto-dimming. The fact that every vehicle from the Germans and Lexus in the compact and midsize luxury class has both mirrors auto-dimming, while even the most loaded Cadillacs do not is simply laughable.
Here to hoping that Cadillac takes many of these things into account when making product changes for the 2016.5 and/or 2017 model years, and that the service experience at your Cadillac dealership improves.
Cheers and enjoy the ATS. We hope that an the ATS-V is in your future!
PS: we’re including your letter to Mr. de Nysschen below, in hopes that it actually reaches him. Customer communication addressed to the President of a brand (or a company, for that matter) should, at the least, be shown to him, and not passed off to a customer service representative.
Some takeaways for the folks at Cadillac:
- Consider including the LED-based DRLs and adaptive HIDs as standard equipment on all ATS trim levels.
- Offer the LED-based DRLs and adaptive HIDs as official Cadillac accessories for those customers who want them.
- Work with dealers to service/repair vehicles faster, and give Cadillac customers a Cadillac as a loaner vehicle (not a Sonic)
- Don’t put communication addressed to the President in the hands of a (dis-interested) customer service representative
Dear Mr. De Nysschen
I was so excited when I bought my 2013 Cadillac ATS you could not imagine. It was my first true luxury sports sedan. We got a loaded “Luxury” version with all kinds of goodies. An MSRP of around 50K. I was beaming and proud. The next day I drove up to my gym and noticed those trendy but cool looking DRL LED’s (Day time running lights) I saw on the ATS pictures etc were not on my “Luxury” ATS. I was stunned. I went home and onto CadillacForums where I found story after story of idiots like myself. For me I was just so excited to have “arrived” if you will, I did not read the fine print. I saw the swivel lights were not on the lux model, which was fine, but did not realize DRL only came as part of this package!?!?
I love Cadillac. I follow all the brand news on GM Authority. I cheer for your PWC racing team. I have always liked an underdog. And right now that is where Caddy is perception wise with much of the general public. My ATS is an incredible car, as is the CTS etc etc. But perceptions are still there. You want Luxury, you get a Bimmer etc like most of my friends have. I cannot for the life of me understand why Cadillac is not offering DLR’s on even the base ATS? I never see your competition without them. Even basic cars have them now. But when you see a CLA, A4,C series or 3 series, you know something special is coming down the road at you. Not so in my ATS. It could be a Malibu coming down the road from the front. You are missing a great opportunity to create a WOW factor on this amazing luxury car. You want people to get into the next car up eventually, so why cheap out on the base model? Or even worse a 50K Luxury package?? I see so many ATS’s here in Toronto without the eye catching DLRs? Each one is a missed opportunity for you to make a statement to every Merc driver out there. And make that ATS driver that more proud.
I have checked repeatedly for an aftermarket kit with the dealer, but nothing is being offered? I see the dealer often. Too often. My car was in the shop for 2 months straight last year while you tried to sort out a piston problem. TWO MONTHS…. It has been back for various things many times. In fact, today it is there with an oil leak and a transmission issue engineering is looking into. We are now over a week for this latest issue. Perhaps, just my bad luck? But I am seriously thinking of a Mercedes C series when the lease comes up. I have zero confidence in my ATS long term. And although we were considering an ATSV next year, this is now under much more scrutiny.
And isn’t that a shame? My Wife and I are definitely the market you crave. I have often joked with the dealer, you should be paying my Wife to drive the car around Toronto. She and I are the youngest ATS drivers we have seen here. Especially my Wife, who is also pretty damned hot. That is one way to change perceptions!
I love your ideas, and I wish you the best. I also hope you will take my humble advice.
Cheers
Jeff Teravainen
Comments
I totally agree with the give Cadillac loaners not some Saab or rental cars. And like everyone else the lack of leds surpised me to. Jeffs wife is hot
Looks like the photo is reversed. Or does the ATS have right hand drive. Jeffs wife has wedding ring on her right hand.
I was 43 when I ordered my first Cadillac. A DTS Lux III.
Apple is what it is because of Steve Jobs.
Johan de Nysschen is not Steve Jobs.
Therefore Cadillac is not Apple.
Johan de Nysschen is Pope Francis in this current-day reality where Cadillac is more like the Vatican than it is a successful consumer product company.
Johan is Pope Francis?
Please elaborate …
He is an outsider. He was not the obvious choice from Detroit. Just like Francis was not the obvious choice from Rome.
The Vatican and Cadillac are both steeped in a rich history and tradition that are weighing them down with a Byzantine decision making process.
This is what Apple will look like in 100 years.
Thanks Jeff for sharing your experience and advice regarding your Cadillac. I hope more of their customers stand up and reach out to them as you have. These shortcomings will indeed keep Cadillac at the back of the luxury car segment! As a GM loyalist you try to defend the brand when its obvious setbacks are highlighted; either with a review from the automotive press or simply a customer experience such as this. Yet, you’re always letdown due to their lack of addressing such concerns.
At the end of the day, I’m quite confident GM will get things right, with debut of the CT6 and the tech the car showcases, it spells a brighter future for the brand. But in the mean time, loyalist have to acknowledge there are still issues with the brand! Until then, I would encourage you to purchase the competition and see why they are the true standard of luxury!
After selling my E92 BMW 335i coupe for my wife’s Ph.D (I know, same price…) she is now nearly finished so we are in the market in the next 12mo. NO WAY AM I GOING TO RISK GETTING CAUGHT IN A SONIC FOR 2 MONTHS!!! De Nysschen absolutely needs to address this issue, publicly, before I will even test drive an ATS coupe.
Reading this article was a great disappointment for me. The BMW dealer was polite, and our loaners were always interesting new models to try – a 328i, an X1, so we got to try the new 8speed auto and the turbo 4. But they were always trying to inflate the sale prices and deflate the trade-in values. I lost $8000 in 12 months and only 14000mi. Meanwhile, the GM dealers we visited for my wife’s new shopping-trolley were the only ones (not Ford, Hyundai, Toyota, or Mazda) whose prices out of the sales-persons mouth were the same as their internet ads – that alone got my total respect and had me focussed on GM products for my next performance car, until I read this…
Dear Mr Teravainen, I have just read your post and the attached letter which you had previously written to me. I’m saddened and frustrated by your experience. The ATS is an outstanding car and deserves better. Sometimes complex machinery can go wrong, which is why car companies have s service network. But it shouldn’t take two months to repair. Please email me at [email protected], I’d like to learn more about all that transpired directly from you. Regards, Johan de Nysschen
Folks note I think we have the real deal here. Most of GM’s web address are like this and I have used them to communicate with many GM people Including Bob Lutz who personally answered his own e mail.
Chris as the Author here I think you may want to follow up on this address.
It matters little if it is GM or anyone else when you contact a company they have a staff of people answering the letters. That is not a shock. Most heads of Automakers have little time to do what they should be doing. Also Customer Service is a difficult spot to fill anymore and it is hard to get good people. I see it in my own company as it is. Few people want to work and in the Service job you have to not expect to win. These folks take a beating and many just can not handle it. Many like this rep if they were this bad do not last long.
As for the loaner I think you will find that is a dealer issue. I have found that most GM dealers in this area generally give you alike model to what you own including the Cadillac dealer.
As for the problems cars like this run that risk. I have see it with all models and brands. Now keep in mind not all of them are having these issues.
As for the LED lights? The car did not have them when he bought it and if he wanted them he could have gotten another car. If you look the ATS was the last Cadillac car with out the LED or advanced lighting system and I am sure it will be upgraded soon. LED is just a recent gimmick and will be just the norm soon enough. As for Auto dim again was it not there when he bought the car? I am sure these things will be changed but the car is several years old and the present admin will bring these things up to spec in due time. They have just now only been there one model year.
Again Chris follow up on this address. If someone is faking it they did it well as it is like the many others I have used.
Wasn’t Audi the first to introduce the LED lights on the headlamps?
That’d have been on Johan’s watch.
Now, pretty much everyone has them- Honda, GMC, Porsche, Nissan.
Yes but the ATS was not introduced on Johan’s watch. He has been there not long enough to put these into play yet. You will see them at the next update.
Note every car they introduced since then has had them. The ATS is now the will so be the oldest car in the line up. The XTS will go away in the next couple years as a fleet car and the SRX is already set to be replaced.
Ya, I was just saying that Audi was the first I remember seeing with LEDs, which I’m guessing dates back to Johan.
And the ATS pre-dates him. I wonder if LEDs count as daytime running lights in Canada? They require them there … (The initial post-er was writing from Toronto).
I believe they were done on his watch.
Yes I think they are legal in Canada as DRL. From what I have seen the Canadian cars use the same as GM in the states.
In a short while they all will use LED as they use less power and are easier to fit in. Plus people have a thing about them right now.
Just wait to see what happens when one fails. They will hate the price. In some cars it can be ghastly. I have seen the cost to replace LED and HID on the front of a car and it is down right scary cost.
Scott, everything about the comment from Johan above smells right (email, IP, etc.). So barring any other information that comes to light, we will assume that the comment is from Mr. de Nysschen himself.
Chris when I saw the E mail it appeared to be the real deal when I saw it. I was thinking about sending an e mail to ask for his insight here. He is know for speaking up as you already know. Kind of a South African Lutz.
I have used GM’s e mail system to good effect on research on prototype parts and tech issues. I have really gotten a lot of good info, help and met some really great people using it.
I just got a friend in touch with GM’s performance driveline people to get help on a Turbo issue. He didn’t believe It would work but in less than 10 mins he got a reply.
Engineers love challenges.
This letter highlites what really in a nutshell shows Cadillac in it’s unchanging image . First in style , inside and out , but less than average build / component quality and poor customer satisfaction . Customer satisfaction is the key , the heart of any prestige product and I cannot recall Cadillac ever getting to be in the top ten here . People for prestige products buy the best and what they see their peers driving . Cadillac’s WOW looks and smoking hot performance is only a fraction of the total input required here to gain acceptance in the prestige market , the real challenge and hardest one is still unresolved !
Spot on. There is a lot of work to be done by Cadillac.
Recent J. D. Power Initial quality indicates how much harder they must work to compete. Of the eight “premium” brands I believe there were only 3 below and two of those were Acura and Lexus, generally cheaper automobiles. BMW, Mercedes, and Audi were all above.
Reputation must be earned and products not just priced as premium.
Nevertheless, it’s hard to believe Acura (Acura!?) is outselling Cadillac YTD, and year on year.
The TLX is outselling the ATS and CTS combined (chalk it up to people waiting for the new models?), and the RDX/MDX is almost double the SRX. Still …
I’m not an Acura fanboy, and don’t like that bird-beak grill design. but you’re right – Cadillac has their work cut out for them when they can’t kick Acura to the curb.
And if Acura sales are being driven by the west coast (I’d guess they are …), maybe Cadillac picked the wrong side of the country to stage their comeback.
Time will tell …
Every class-competing vehicle offered by Acura is thousands less expensive than the class-competing Cadillac. Also, Acura has 2 crossovers in the lineup, which are an obviously not segment right now.
So, no wonder Acura’s volume is higher. Way to oook at the big picture.
I had an ATS for a week and likewise demonstrated it to a friend with a BMW. He was impressed with the car from a feature perspective, but his comment was that the BMW experience goes beyond the vehicle itself and his impression was that GM — and its dealers — weren’t there yet.
You they are not there yet. What we have now is what the past management deemed good enough. Well the incoming has declared it is not good enough and has set out to take what we have to the next level.
Case in point the CT6. The CT6 while a good car is not going to be the best in class with no question. That is why it has been relegated just to be the biggest Cadillac till the true Flagship is done.
Also the present cars are not what all they should be and the ATS and CTS will see major make overs in the near future.
Now for the most part I agree with Jeff but the key is much of what he is complaining about was not on the car when he bought it. I can understand the service complaint but the features were not there when he bought it. If you want a car with them these options then buy that car.
If I want a Turbo with AWD I would not buy a RWD non turbo and then complain?
The Service issues are one that GM is working on and still needs to address with all divisions. As I have stated Service is not an easy thing to do in a company as large as GM nor is it easy to get people who handle it right. Not many people can take the crap the hear and still serve the customer well. It is a tough job and few can do it right.
Fixing the dealers actions too are not as easy as some would like to think it is. The laws protecting them can be a major issue in trying to enforce the rules.
The Bottom Line is this. if you want to lead the segment you have to be the best. Not just the best by a little but in this segment you have to be the clear best model. Those like Johann understand this and it will take some time to bring the needed changed and updates. This is not a one year fix. God know everyone at Cadillac wished it was.
Scott, over at Cadillac forums there was a thread of dozens of owners who thought those beautiful headlights on the ats had the LED’s. Story after story. Of course, they all missed the fine print. But they all expected them on a luxury car to be included. Every time you see the CTS on the road it says something to you as it approaches. The standard ats says very little. I think that Cadillac wants and needs people to ask “What the F&@K is that!?!?”
You have to understand too that there are product cycles too. The car has been in production since 2012 as a 13 model and it do for some more work. Add to this that new management just came in last year. While the 16 models were locked in by that point the changes should start to show up in 2017.
Keep in mind few cars had LED and not even all the Audi Models If I recall had them back in 2012. Most others did not have them either.
Product changes happen on a model level not a brand level anymore. Even introductions of variants are staggered over several years like the V series and ATS coupe because of the development cost and the marketing aspect.
It is like the Last Malibu. While it was a left over pre Bail out design and a late to the market they had to go with it as the new D2XX platform was not ready yet.
The ATS will soon enough have LED and in the near future most people will not even give them a second thought.
Also use care with the What the F($*K is that. That can be a good thing or it can be a bad thing. Mixed feelings is a hard way to sell cars. The CTS Coupe was like that. But the Elmiaja was toned down little and nearly had full acclaim all that saw it. While they will not copy it fully they will use this as model of where they are going.
At times less is more. Shape and flow count for more than just being different or going for shock value.
I’ll still only ever buy GM. But I really hope GM gets some people that actually care about the brand like it used to be.
The only motivation any car company has to improve is non-brand loyalty. They sell you a piece of junk? Drive off in another brand.
That said, one bad experience does not a brand make. Do some research. If the car you’re buying has uninspired reliability, don’t be surprised when it’s reliability turns out to be uninspired. Consumer Reports lists the ATS as it’s worse rating or ‘much worse than average reliability’.
Not sure who you’re fucking talking to. My comment was directed at corporate who doesn’t care if they make a shit car or a good one. I’m not a moron and know how to pick an automobile, which is why every GM product I’ve ever owned has never needed more than general maintenance. Why don’t you take your inflated ego someplace else.
Blind bland royalty leads to product mediocrity. I was addressing you but really the reader in general.
For clarification, I don’t buy GM out out “blind brand loyalty”. I buy GM because despite shortcomings with some models they still make the most dependable vehicle. I’ve owned damn near every brand available in the US and nothing has lasted like a GM.
I see what you meant now. No slur intended. I’m happy GM has worked out for you.
My point wasn’t clear. You see we’re in a discussion of a car that CReports considers not so reliable. The letter talked about terrible dealer service. And then you said you’d buy GM no matter what.
That triggered the notion in my head to say, hey, don’t give them a walk out of loyalty. If that’s offensive I didn’t mean to be.
All we’ve got is a Sonic? Horse-shinola. You’re a frickin’ car dealer. Give the guy a brand new Cadillac until you fix the one you sold him. Then sell the temp Caddy used. Why? Because you’re a frickin’ car dealer.
I think one other thing that needs to be addressed are dealers. Most cadillacs are in the same showroom as Chevrolets. I think there should be seperate showrooms so one for Chevrolet and one for Cadillac.
Vic I believe that is going to be addressed but again that is not going to happen in one year.
Second it is not so much having a Chevy in the Showroom as it is the dealer just is not treating the customer right no matter what GM brands they carry.
I can show you two dealers near me that one offers Chevy and the other across the street offers Buick and GMC.
The Chevy dealer has become one of the best GM dealers in the region while the Buick dealer has gone to be one of the worst. The difference is the owners and the way they go about business. The GMC dealer is so bad I have gone to one father away to get better deals and service.
But with the laws on dealers GM can only do so much with the dealers. Same for many other brands. The problem is many of these dealers have been in the same family hands and have been corrupt for years. They are not afraid of GM or any other MFG because they know how to skirt the rules.
GM ties to use the surveys to hold back discounts for buying cars and other tactics but most can get around them. They also have really tried to help the good dealers with better discounts and more help on improving the dealers facilities.
The Buick GMC did remodel but just enough to change the looks. The Chevy dealer tore down the showroom and sales and completely built a totally new two story facility. They even have a waiting room with wi fi and several large 70″ plus TV’s and a woman hostess that serves snacks and something to drink. Note this is a Chevy dealer not Cadillac or some premium brands. Loaners are generally a car identical or even better than what you drop off. Their Service department is second to none and staffed with tech that have been there for many years and are very well trained. It really makes a difference.
Scott,
Right on. No issues with selling Cadillacs with other automobiles, as long as the service and amenities are there. The automobile must be a product the public wants to buy and I can’t believe many folks are swayed by a separate building. The service in that building is what counts.
Right now I am more impressed with the service in the Chevrolet dealership I go to than the Cadillac one, that is right across the street and also owned by the same individual.
The Cadillac store is “brand new” and has all the amenities, but what is most important to me is the product and the service.
Example: When I took delivery of my ATS Premium, (loaded, listed for over $55K in Sept 2013) I came out to find my license plate and frame along with the bolts sitting on the trunklid of my new black car. When mentioning this to the salesman, he saw nothing wrong since there were no obvious scratches! It is this type of mentality that needs to change!
Sounds like a classy dealership.
Let us know who it is so we can steer clear!
I agree that all levels of ATS should have the
LED lights, like the CTS does. With those
LEDs, you can tell it’s a Cadillac coming or behind
you from a long distance.
At Dealers, 90%+ of the ATS’s in stock are Base
or Luxury, with no LED headlights.
Between that and the Brochure/Internet,
no avid car buyer should have made the
dump mistake of buying a Luxury and
expecting it to have LED headlights.
Art that is true. A customer has little room to complain if they made their own mistake.
Too many people today really have little idea what they are really buying.
Competitions is tough anymore as brand loyalty is down even on the Asian brands that were once considered untouchable.
This is why we are seeing changes and update to many cars anymore. I expect they will get toe be more often in many segments as time goes on.
The biggest issue at Cadillac is too many leaders and turn over for a cohesive product program. Now that we have settled on one hope that he is here long enough to see the plans through.
Cars are like soup and too many cooks can leave your soup with too much salt. To many changes of a auto brand and you end up with a mix portfolio of products that send too many messages and mixed standards.
Lets face it the turn around started with the XTS and now we are finding the CT6 is good but not good enough for a flagship. While these changes have slowed Cadillac’s rebuilding it at least is sliding the right direction and not watering down the product.
Over at Chrysler they have now targeted the 300 no longer at Cadillac or even Lincoln but the Impala and Lacrosse. There was a lot of potential there but they have left it on the table. the model started off strong now it will be discontented to a cheaper price segment as time goes on.
I really love my 2014 ATS Premium with the 3.6L in Obsession Red (w/LEDs). I do see the majority of ATS cars don’t have the LEDs I totally agree with Jeff, I want everyone to notice the ATS and want one (this is how you increase sales). I realize you want to differentiate the Base and Luxury from the Performance & Premium but find another visual touch to do it with. Also my $50K ATS doesn’t have the blind side warning alerts in the mirrors like my wife’s 2013 SRX Premium and my kids $27K Camry. This type of safety device should be standard as it is on much lesser manufacturers models.
Cadillac, you’re striving to be “The Standard of the World” once again, equip your cars like you are.
To be the standard you must set the standard and I believe that $12 Billion is where that will go. No more arguing over the price of a better door handle as has happened on the CT6.
I wish Johan would chime in here with his future thinking and general time line. It that was his post. We have yet to see his vision but I have been listening to him and the ideas he has are in the right direction but it will take time to carry them out.
Thank you, thank you, thank you.
When I was ordering my 2014 ATS Premium I got into a big discussion with the salesman regarding blind-side alert availability. He tried to tell me it was available with I believe a $600-$800 package. I’m fairly knowledgeable when I walk in the dealership and promptly told him he was lacking in the knowledge of the product. On the 2014 ATS Premium the driver awareness package had to be ordered for approximately $3K to get blind side alert. I’m sorry this is borderline tacky for a vehicle >$50K. As far as I’m concerned, this one of the most valuable safety additions for preventing collisions. Standards of the World must be equipped with those as standards.
I like getting all my info and then go in and just let the salesman go. At that point I know if I am working with someone who has a clue or if it is someone that is just selling cars between other jobs.
I find the guys who have some time in and put some effort into knowing the product tend to be easier to work with. They play less games because they want to sell you a car again in a couple years.
Well I think some of these items are still left out as Cadillac has gone up in price and for each and every thing you add that adds to the price. They are not ready to make the car even more expensive yet.
The key is they are still making a good profit at lower volumes as that is one advantage to an expensive car. Other than content it is not really much more expensive to design a Chevy vs. a Cadillac.
Race teams do this too with multi car teams. The first car is the expensive one and the second one with more sponsorship adds much more to the income. Sure you have to have another truck and crew but the income is such you make a much larger profit with each added team.
This is why GM is really investing here. You really do not have to sell a lot of cars to make money. One Cadillac makes more money and a bunch of Cruze or Sonic’s. With truck sales carrying the load they want to get more profit from the cars and this is how they will do it.
The more expensive the car is the easier it is to make money.
The customer really has no reason to complain about the DRL’s . In this day and age you can find so much info on the inter-web on just about any vehicle offered for sale . But I hear his dissapointment in the letter , Cadillac should offer these lights as standard equipment regardless of the trim level . Heated seats for example , I have passed on quit a few vehicles because that option isn’t offered . When you have a bad back those heated seats are wonderful .
But I am getting a bit tired of ” some ” folks giving Johan a pass on Cadillacs current problems . He is the head of the division and should be aware of what is coming to production . He has to sign off on the project before its built . Thats what management is for . Ok, maybe the first year of production miseed some things but he sure has time to fix issues withe the next model years cars . Delphi and the other parts suppliers are geared up to make changes when needed . All Johan has to do it tell them to change it . Sure the current models were in the pipeline when he arrived , but he should have had his hand in making sure the cars wre Cadillac ready . Its no excuse to keep saying it isn’t his cars . When you make a mistake you need to man up and take the heat . And when I keep reading its not his fault it just is a waste of time to continue to read the posts of the same forgivers . If Cadillac wants to play in the same game as the Germans then they need to come to the game with all the options that the others have or Cadillac will lose , and that loss is their customer base ( past and future ) . Plus why does Cadillac feel the need to try to copy the Germans , there is enough brain power at Warren and the 13th floor of GM Headquarters to figure a way to be BETTER than the germans . If they continue trying to catch up they will lose . And Johan will be in the hall of shame and be remembered as the guy that was given 12 billion dollars to turn Cadillac around and failed .
This is nothing new. I see it on many web sites where people complain about the lack of something on a car. Like you said there is no excuse anymore for not doing your home work.
When you go to spend $50K or more on a car you should know more about it than the salesman. But yet people walk in and then get upset because something was missing because they did not do the research into what they bought.
It is no wonder so many people get swindled in life.
You may not like Johann getting a break but he has not been here long enough to add much to the already locked in models. Keep in mind they work about 2 years out pretty much locked in with suppliers, design and testing. He was announced on July 11th of 2014 and with the 2015 going into production at that time and the 2016 already locked in not much he or even Mary Barra could have done to put much change into the line up. This stuff was already approved and signed off.
Now with that said we could see some mild updates as early as 2017 on present models like the ATS. you may see the LED by then. Also the coming products may get some minor updates to get them closer to what he wants but even then they will still not be his products. The first of his all new products will be the CT8 as it was started under him and only had his hands on it. At that point on the Cadillac company will be his to take credit or the blame for.
You have to consider design and production time lines here and even Bob Lutz could have not done it any faster. Even the GTO for him took two years and the changes were limited due to time and money.
This is not a short time turn around as things even working faster in the industry still take about 4-5 years to do it right from a clean sheet of paper. Many of the changes they want to do will be clean sheets not just mild refreshes.
I believe he is on the right track but I am watching to see if the board will leave him alone long enough and continue to fund him in a way that he can do it right. That has been the major sticking point in years past not only at Cadillac but GM entirely. Case in point this new Malibu we are getting is the first fully funded Malibu we have had since the 60’s. GM too often wanted a 5 Billion dollar project done with 3 Billion dollars. This is why the engines were always great but the power windows would fail. behind the cheap door panel.
I really do not know of any company or any one person who could make any significant changes in less than one year? July 11-2014 to July 26-2015
Yeah – they’ve given the Cadillac team a lot of rope, no question.
Pulling the plug on him now would either be a.) a genius move, or
b.) maybe more-likely, similar to the NY Jets dumping Pete Carroll after one season. The Jets have been in a tailspin ever since … Carroll went on to do well, with the Pats, and USC, and Seattle.
I don’t agree with everything, but the guy who replaced Carroll in NY (Rich Kotite) was given two years, and went 4-28. Johan & Co, let’s see how things stand in July 2016.
Well the way I see it they have given Johan the money, the place and the time to do as he see’s fit. If this works it is all to his credit and if it fails it is all on him. I find people work better when they are held responsible vs. just passing it off on the corporation.
For too long GM has done things by Committee and not held anyone responsible by name. Back in the day people like Harley Earl and Bill Mitchell put their names on the lines for the design of cars. Today they get great credit because it worked. I like to think that holding them responsible brought out the best in them.
Scott
The sad reality if it doesn’t work is that Johan walks away with his money. He needs to be held on somewhat of a leash and not be just a loose cannon. $12 billion dollars can do a heck of a lot even for a corporation the size of GM. What $12B could do for their pickup and SUVS and CUVs would be unbelievable. We all know where the big profit is it GM, and it is not in Cadillac. It is in the pickups and large SUVS.
Martin the truth is people like Lutz, Iacooca. Delorean Earl, Mitchell, Duntov etc are all high profile people in the industry. They are not only job driven but ego driven in a good way.
They are understand history and how they want to be seen and remembered. Johan is much like these others as he speaks out and says what he thinks. He stands up to people over him and is not a yes man. He has a history that is positive and he is not about to f it up now.
I do agree there are folks out there that are low profile and they come in put their time in and slip away almost undetected and unblaimed for the messes they have either created or not corrected. GM has a long history of these guys .
Also keep in mind Johan is not all that old and may aspire to even more so now is the time not to mess up. He has placed himself in the position as the guy who either saves or kills Cadillac. So far in a year he has gotten GM to do more than they have in the last 40 years to Change Cadillac’s culture funding and products. GM just 5 years ago would not give up this money or even commit to making a Cadillac only engine series.
I am not sure if he had naked pictures of the board or what but what ever he said or did worked. The past Cadillac leaders were not really leaders and did not do anything like what has happened in the last year.
They may not turn it around but the fact is they finally have been given the tools needed to do it. If you like what they have done so far with little or nothing and a bunch of shared parts lets just see what they can do with the $12 Billion.
As for the trucks they can take care of themselves. They are far from underfunded.
The fact is the most profitable cars are the high end luxury cars. In low volumes they provide over half the profits that all cars make at GM. The thing is like a truck the development is not that much but the profits of the higher price point is a much higher return on investment than a Spark or Sonic. There is more meat on the bone here.
Now this is not my view but what those in the industry are saying. They know the Trucks will take a hit with CAFE in the future. Profits will drop as more expensive material are used and prices continue to rise. The smaller truck at GM was for more MPG but also to hold cost down. People are going to be limited on truck by price more than anything.
GM and most other makes are focusing on the luxury cars as the profits are much greater. This will offset some of the lower profits on the trucks.
Ford was going to kill Lincoln till the smart folks inside got them to let them have a go at it with the promise of increased profits.
Cadillac is like GMC in a way. They are taking cars that while they have a higher value in content they really do not cost more to design or build. The content is paid for with the higher price but they can make a profit nearly as high as the most profitable trucks like a Denali.
Also now that the SUV and CUV are in the game the luxury divisions can make even more money on these. the Escalade I would guess today is the most profitable GM vehicle ever. The cost to make one vs. the price they sell it for is so great it is pure mega profit. But yet they do not have to sell anywhere near as many Tahoe’s to make the development cost
up.
Anyways Johan is not a take the money and run guy in my estimation. He wants a legacy and he has one already started and this could really put a crown on it if all goes as planned.
The guy who turned BMW around was the same way and while he is not well known here in Germany he is their Lee Iaccoca.
Guys regarding not understanding the DLRs etc. yes I admit I didn’t understand it. I honestly thought it was a different situation from the swivels. Having said that I certainly was not alone if you go to those forums . There’s also all kinds of threads on where to buy them after market.
When we bought it I was beyond excited, and nervous as f:-0ing hell about spending all this money on my first real luxury car. Yeah I was disappointed when I found out They weren’t there. But I was also very disappointed in General Motors for making a near perfect car but not finishing it off with something like these.
Cost are a major factor in making a car. In the ATS the price was critical to keep it under the BMW and not any higher than it already is.
While you may not see it there is a lot more things they invested in to make the car better than they have in the past. But when you work with trying to keep a competitive price you have to pick and choose the content.
I remember in making the 5 gen Camaro I had a friend who was brought in as an owner adviser. She was asked all sorts of questions and some were very odd.
One question was how important is the smell of leather in the car? That really struck her an she asked why. Well the smell of leather is not natural. It has to be added in the process of tanning and dyeing the hide. It cost more money. They wanted to know if it was expected or not and if not they would use that money for something else.
Now on a more expensive car it would have just been added as the price point is much higher than the Camaro but here the profit margin and to not get too far away from the Mustang they has to use care in what they choose for options. This too is why the cheaper cars do not get Halo lights etc.
The Alpha was in development in the middle of the Chapter 11 as it really started back in and around 06-07. It was shelved a few times and brought back. As time passes I think some of the new features were just not included do to the delayed development. Now that they have more money they have stated the ATS and CTS will see major changed when they are move to the CT4 and CT5 names. That should happen in the not too distant future. I do not expect them to have Cadillac engines by them but they will get a major revamp.
And yet, the ATS costs more than “the BMW” you mention.
That pic of Jeff and his wife is a very professional photograph. But something looks wrong about it. Is the steering wheel on the wrong side of the car?
Someone got the negative backwards or it was a mirror. Note the wedding ring is on the wrong finger.
Shots like this are not as difficult as they used to be. but the same thought did cross my mind on the photo quality.
Some companies are doing some ruthless things in the media and web to cast questions on other MFG.
It’s a selfie from an iPhone! Just reversed
Nice write up, great looking couple. This should be EXACTLY what Cadillac and GM are looking for. He should be given a crazy trade in deal on his ATS for a discounted V . Loyalty should come with rewards. I feel like this easily could have been my story . But I’m still upset about no true ATS-V v8 option for us true enthusiasts of what the V was supposed to stand for. Along with things like 6.2 truck options while still maintaining front bench seat. It is a TRUCK after all. I want the HP and the versatility. I’ll keep my two seater in front only options for my sports cars and unfortunately my sedans.
Of the missing LEDs — it really falls to the buyer to properly research a car. Too late to complain after the fact unless it’s shocking that said item is missing. That is: if a car’s back seats look like they should fold down, should fold down like cars in its class, but mysteriously DON’T fold down — the salesperson should feel obliged to point this out.
LEDs are a decorative thing. It would be like a Buick buyer discovering their ventaports two weeks later, discovering they serve no actual purpose, and getting mad. Well… that’s life, kid. Pay attention next time.
That said, just because LEDs are ‘popular’ status decorations doesn’t mean they’re stylish. There’s a chance that the Cadillac designers rejected them as ‘ugly’. I’ve seen some of these LED cars coming up the street at me and some look like juvenile after-market mods.
Yeah, LEDs could be like a carbon-dating device: oh, LEDs – I remember those…
They were cool when they first came out.
Hope they’re not 21st century whitewall tires. Or how politicians all wore red ties in the GWB years, and now, both sides of the aisle are wearing powder blue. Or that whole yellow paisley tie and suspenders thing in the 90s.
Or Rick Perry’s glasses. Pretty sure Trump’s hair isn’t going to get popular, though. That’s a relief.
this is one of the best articles I’ve read in a long time from gm authority, lots of inspiring posts and insight on Cadillac. i just hope jeff gets what he deserves, (an ats-v) , gm has to take this letter seriously and do the right thing if they want to keep or get Cadillac loyalty , keep up the good posts everyone !
I was very close to buying an ATS a few months back. Now, I’m happy that I didn’t get it. After years of being GM loyalists, my dad warned me that this is how GM treats its customers – Cadillac, Chevy, or Saturn – all the same. I lamented that i had to pay a fortune to get LED lights on the ATS, whereas Audi (and Honda) include them on much lower models. Soon it seems I’ll be able to get the 2016 camaro with a v6 for about half of what it will cost in the ATS. And it will probably be cheaper to service that exact same engine in the chevy. Maybe I’m mistaken, but the Audi’s V8 and Supercharged V6s weren’t prominent in the VW brand. The only thing that distinguishes the caddies these days are their seats. Bring on the exclusivity! Drop the anemic 2.5L malibu base engine (infiniti q50 base model comes with the best v6 in the industry – which GM benchmarked). Increase rear legroom to industry standards (3 series, A4, etc). Make these changes and we’ll gladly consider the next gen ATS.
I was also disappointed when I bought a 2016 ATS Luxury and found out, after bringing it home, that it didn’t have LED running lights or headlights. I was disappointed in myself for not checking into this more closely. Given the shape of the headlights, I thought they’d have LED. Again, shame on me.
But, EVERY other car I test drove in this segment had LED lights.
I should have done a night test drive or brought it home overnight… and I would have discovered that and then ordered something from the factory.
Otherwise, I absolutely LOVE the car… just wish I hadn’t blown it about the LED lights (or that Cadillac hadn’t blown it).
great talk..how do u put on factory fog lamps on a 2016 ats 2.0 luxary?
I like my 2015 ATS Coupe Performance V6.
Worst part is the CUE.
Time for a new car though, but there are very few ‘Coupes’.
Might have to get another Camaro!
But my wife will be driving the ATS, no matter what I get.