Cadillac will once again feature a new chief executive after General Motors suddenly ousted Johan de Nysschen. The automaker replaced him with GM loyalist, Steve Carlisle, who most recently led GM Canada.
However, Morgan Stanley analyst Adam Jonas thinks GM could go further and actually spin-off the Cadillac brand. The move Jonas detailed in a Tuesday report with Markets Insider is not unlike what Fiat-Chrysler Automobiles has done with Ferrari. Though, Ferrari and Cadillac hardly hold similar brand cache.
Still, Jonas and Morgan Stanley value Cadillac at $15 billion if it were an independent business.
“We continue to see Cadillac as a distinct and highly valuable business that can increasingly justify and independent existence potentially outside of the GM parent/group structure,” he said. “We believe that Cadillac is in a position to potentially report results as an independent business not unlike Maserati at FCA or Ferrari before that.”
Morgan Stanley also commended the move to oust de Nysschen. Newly minted Cadillac President Carlisle reportedly was heavily involved with GM’s digital strategy, which the bank believes is encouraging.
“We expect that his leadership can accelerate Cadillac’s potential in the Auto 2.0 ecosystem, potentially delivering unique connected experiences to drivers and passengers,” Jonas said.