Read Johan de Nysschen’s Entire Transcript From The J.P. Morgan Auto Conference
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While we’ve recapped the big pieces from Johan de Nysschen’s address at the J.P. Morgan Auto Conference, including his sales goal of 500,000 vehicles by 2020, pushing back a European introduction and an incoming product hiatus, we have the entire transcript from the event at the link here for your reading pleasure.
Besides the major takeaway points, the final page, which covers the brief question and answer portion, has some very interesting takeaways, too. One audience member questioned de Nysschen’s use of alphanumerics now, and for future product.
If you were previously unaware, CT stands for “Cadillac Touring,” while XT stands for “Crossover Touring,” followed by a number to signify its hierarchy in the lineup. The larger the number, the more senior the vehicle.
That small bit can clue us in as to where the 2016 Cadillac CT6 sits for the brand and, it certainly isn’t going to be a flagship model, with three other numerical slots available before hitting double digits.
One other audience member asked about de Nysschen’s past with Audi, and how he plans to use his expertise to create a unique luxury experience that is Cadillac. A brief portion of his response reads as follows:
We’ve got to feel like a Cadillac, not in the way it looks, but in the way it drives, the way the door closes, the way the buttons work, the way the leather feels, the way the car smells, and all of these things are important and finally, of course, the quality of the dealer network. The dealer network must support all that you do. It’s the forum where the customer engages the brand and that’s probably the area where we have the most work to do in the United States.
If you’re feeling gutsy, have a read of the entire transcript, then bring it back and let us know how you feel about what de Nysschen has to say.
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Johann is absolutely right, Cadillac needs cars that breathe luxury, not just expensive materials.
Quality is in the small details; well combined materials and bright and friendly colors inside.
The interior of the CT6 is well in design, fail in a few details; but that’s the design line to follow.
And an area I believe BMW is faltering- Moving from a “Luxury vehicle” to “Check all the boxes”.
We feel the current cadillacs breathe luxury better than the current BMWs, and we own both.
Johan is on the right track. But as a Cadillac owner myself for over seven years I know that he has a challenge ahead of him.
The three character names are not new at Cadillac. They first appeared on the 1988 STS. The numeral may be a new twist. But we’ll get used to it.
I’m glad we’ve got Johan. I think he’s the right man for the job.
1988 sts? you mean seville?
I have heard over and over that Johan wants to seprate Cadillac from GM and give them their own operating profits and loss sheet. How will this help Cadillac? At a consumer standpoint everyone knows Cadillac is GM since its been that way for over 80 years. Also who dose Cadillac share platforms and engines with? GM. Who Johan report losses and profits to, GM. Cadillacs will be built in GM plants. I guess I am saying why try to make it look like Cadillac is its own subsidiary when everyone knows it’s GM.
His plans otherwise sound great I just can’t wrap my head around his separating Cadillac from GM expecting that to make a huge difference.
Dan it is simple. Cadillac is separated from GM will show the money they are making. Even at lower volumes now they are more profitable than ever. The problem is it does not show as it is hidden in the quarterly reports of GM.
If they report this alone it will add to the prestige of the company that they are selling quality cars and making money.
As it is now many here wring their hands and say oh my god Cadillac needs to sell more cars are they are doomed. Well they will sell more but not a lot more as they want to be a lower volume brand and with the profit per unit they can afford to be and it will build their image.
The only real opposition I see is GM would take a hit on their quarterly reporting as Cadillac brings in a lot of money even at present volumes.
Also note that Cadillac will move to their own engines and while they share platforms they will be much different from anything else GM has. Even today the Camaro and CTS are on the same Alpha but there are few parts that interchange.
Thanks for the response. Now my question is based on what you stated, how will GM profit from this new setup? Car makers love the profits they get from luxury cars and it seems GM is diluting standard operating procedure in giving Cadillac its own profit loss margin.
The risk here is worth the gains.
To report their profits separately will not be that much more expensive when compared to all the other things they are doing. It is on paper it is not like you have to build a plant to report it.
The real risk is you remove the profits from the GM numbers and how will that look. Those inside GM may not be keen on this.
Reporting methods vary with many companies to make them or specific targets appear highlighted or to hide things. Just look at Tesla’s unorthodox method.
Of all the things Johan wants to do this is one of the easiest and cheapest to achieve. The hardest part is to convince GM to let them do it.
The Image of a company is measure often by many with successful numbers. If a company is making money it is trumpeted as being a successful company in the media and in the minds of the consumer. This is one metric that Cadillac can report now that is showing signs of where they are winning the game. Hide these numbers in with the rest of the GM numbers and they get lost.
The fact is the standard GM operating procedure has not really done anything for Cadillac. Reporting their numbers in public will make them stand on their own in the public eye. Yes there is some risk here as if they have a bad month it could backfire but I think with the way the profits are now the risk is small.
Interesting thought and feedback. So do you think by 2020 we will see Cadillac set up sorta like Holden or Opal where they are bascily a subsidiary? I can’t see Cadillac end up like Saturn where they were called there own corporation with thier own plants, parts, etc.
Plenty of nuggets in De Ny’s lengthy speech , were you referring to the large nuggets as found on a farmers field after the cows have grazed there ?? If so , I totally agree , amen , amen , amen , hallellulia !!!
does that mean caddy will push its future cars to a later date?
GM want or needs to have a luxury division . Having Cadillac move even further away from the parent company isn’t going to help GM’s image . Thats how Saturn started , being a corporate brother to GM . It worked at first but GM is in a different mind set right now . They need to show the world that it builds cars better than ever . And Cadillac going completely autonomous isnt going to help the corporate image . GM has the means to seperate how each division is competeing in the market place and how healthy each one is . They do it now . So moving out on its own so Cadillac can see how much money they are making isn’t true . We already know how many vehicles they sold for the MY 2015 , just shy of 300,000 units . GM can add . And Johan wants to sell 500,000 by 2020 . You see the volumn does matter not just the price point . And plus the public isn’t as dumb as people want to think , regardless of how far away johan wants to be from GM as an entity , Cadillac will be seen as a car from the General .
Cadillac has a better chance of hitting 500,000 units by 2020 than Alfa has hitting 400,000 up from 68,000 units by 2018.
Johan de Nysschen was appointed president, Cadillac and General Motors executive vice president in July 2014. Nysschen is responsible for all aspects of Cadillac globally, including sales, pricing and network development; strategic brand development and marketing; product portfolio planning, including providing critical input for product engineering and design; and overall business results.