Former Cadillac president Johan de Nysschen played a big part in helping to plan the luxury automaker’s forthcoming lineup of electric vehicles, but the outspoken executive still isn’t convinced that consumers actually want EVs.
Speaking to Automobile in a recent interview, de Nysschen said that many EVs being sold today wouldn’t be approved by the product bosses at their respective manufacturers if they had internal combustion engines, as they aren’t profitable enough and sometimes make no money at all.
“(The demand for EVs is) growing, but companies are having to commit billions, and none of these EV entries would pass the acid test applied for project approval in their conventional portfolios,” he said. “They will all fail miserably.”
Johan de Nysschen in 2016
Nevermind the fact that it’s hard to turn a profit on these vehicles – many consumers don’t want to buy them in the first place. Automakers are investing billions in electrification, both to help drive up stock prices and to avoid being left behind when it comes to engineering prowess, at a time when very little customers want to buy EVs. The same is true for AI and autonomous vehicles, de Nysschen said.
“You also have to deal, obviously, with artificial intelligence and autonomous-vehicle technology. You have to get your arms around developing the capabilities, the technical ability, and competitive products in the zero-emission space, an area where there is still very little consumer demand.”
Cadillac EV Concept
Cadillac showed a sketch of its first-ever fully electric vehicle at this year’s 2019 North American International Auto Show in Detroit. The modern-looking electric crossover will be the first of several Cadillac-badged EVs to ride on General Motors’ new flexible battery electric platform, with the brand’s EV tech then trickling down through the GM portfolio.
Cadillac’s former leader sounds excited at the prospect of futuristic EVs, despite his doubts about their profitability, telling Automobile that Cadillac “has got some really compelling electrification entries that I think are going to dramatically change people’s perception of the brand.”
You can read the full interview over at Automobile.
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Comments
EV models are a slow growth segment for many reasons.
Price, lack of charging in most areas, the full buy in by many buyers etc. these all limit demand for now and are the reasons it is better for Cadillac to offer the higher tech cars in lower volumes than Chevy.
Prices in time will come down the increase in charging infrastructure and better public acceptance will come in time but it will remain a ICE market for a good while yet.
The California market does not represent most of America.
Cali is over 10 percent of the nation’s population, yet represents the thinking of most Americans – what NOT to become! Yet, I believe we do need to stop burning oil to get around and think the tech is coming on hard and fast, despite the ever powerful, entrenched lobbying efforts in this country. I agree that acceptance will come as tech improves, but most importantly when the masses learn to think without said influence. The effect of critical mass may surprise you (and many others) how quickly things will change and I think the OEMs know this, which is the drive behind the investing in it. It wasn’t too many years ago that I reluctantly bought into cell phones, and the rest is, as they say – history. My garage, with a 12MPG Silverado HD and a Volt, is indicative of the transition we are in currently, and my next purchase will be a BEV – unless zero point is released into the masses first – but not holding my breath on that one.
So people buy ICE cars and trucks because of lobbyists? EV’s are not profitable, have poor prospects in the short term, yet billions are being thrown behind it, because.. like, it’s the future man. At least wall street says so, wait, you mean those lobbyists?
If you got paid by the letter, I might ask you for a loan! At least I could buy some asprin.
What a brilliant man. It’s heartbreaking that GM’s bureaucracy snuffed out the spark of JdN.
Agreed.
Would have loved to see how Cadillac would have turned out if he was allowed to fulfill his true vision for the Brand. We will never know but I bet his CT5 wouldn’t lack Heated Rear seats for an example that you can get on a Cheap Kia Forte.
In order for all electric vehicles to take hold in any real manner, the following needs to take place.
1. Gas prices must hit, on average throughout the USA, $5/gal. and stay there for more than just a few weeks.
2. Give people time to adjust to going back to smaller cars and mini-utes..
3. Allow the general population the time to make adjustments to how they drive (speed, stupid unnecessary trips, etc).
4. Having the higher fuel prices actually take a hit on paychecks beyond a few months.
Once this happens, we will see a much broader acceptance of all electric vehicles.
I would add a 5th point that EV technology/infrastructure has progressed far enough to replace conventional vehicles. It’s better but still no way I’d be (realistically) able to jump in an EV for a 12 hour trip to go see family.
@Ryan:
Great point. I missed that one!
And your not going to stop in 12-hours, to eat, use the bathroom, etc. Your also going to have to fuel that ICE vehicle once or twice in 12-hours.
People are making long road and cross country trips in EV’s.
For most, 99% of their vehicle usage is for short trips.
Ryan: You could in a Volt; it’s EREV technology gives you the best of both worlds, realistically.
Agree with you for the most part. But I think the main thing that will make EV’s popular is exactly what the EU and China are doing, basically passing Laws that make purchasing EV’s more practical.
Our Government are still discussing Coal Mines and where to drill and place more pipeline in this country.
So I fear that the likes of VW, and the onslaught of Chinese EV companies may take over the Automotive landscape. Our Government needs to get in line with the EU and (can’t believe I am typing this) China.
I love the sounds of great ICE engines as anyone else here but EV’s are the future. I have driven multiple versions and Tesla is just at a whole different level as of right now.
I personally hope the upcoming Cadillac EV’s will be zero compromise attempts by the General.
Ford made a Brilliant move by investing in Rivian. If reports are to be believed, Rivian has Top Level EV Tech.
GM botched that situation and then allowed Ford to swoop right in. Hope this doesn’t bite GM in the you know what.
These next 10 years will be really interesting to see where the Automotive Industry goes.
@Momolos:
I actually agree 100% with you. Such a great point and my mind wasn’t thinking in that direction when I posted late last night!
I keep up on the political scene and I try hard not to mix anything “political” with GMA simply because talking cars is my way of escaping all the bad going on at this time in our country and the world. But you hit the nail on the head totally with our government missing the opportunity to lead the world instead of getting trampled over because we have a person in the white house refusing to accept reality and a group of people allowing him to do so. Very very sad. In the mean time, China and other countries will pass us up and once again the USA and American brands will be playing second fiddle. Not good.
Oh, and you are so spot on saying about the sound of a nice ICE!! I’ve owned several Jeep Grand Cherokee SRT’s (2008 and 2010) and there is just nothing that sounds so good. And even though when it comes to Cadillac I don’t personally want the “sport” or V-series vehicles, I do love the sound they make when started.
To be completely fair, both Parties are Big Time into Big Oil.
I completely understand that some here do not like EV’s but I believe the main point that is being missed is that the EU and China are desperately trying to be in the lead. Where will this leave our Big Three if they continue down this path?
Just imagine how much further behind we would be if not for Tesla being the leader in EV’s right now.
Will that be short lived once the VW onslaught is upon us?
I hope not but we shall see.
Let the market decide, not the government.
I regretfully agree with you that this is the shallow thinking process of most. In 2008, the last time this scenario played out, car lots couldn’t keep econoboxes on the lot and used car lots filled with unwanted SUVs. Clearly most have no interest in their own history, even so recent, not to mention the planet’s future. I do wish there was (and is) a better way than hiking prices and hence oil company profits to get us there.
Fuel costs will stay quite low as production costs are low and supply is high. It will take the addition of a substantial Carbon tax to make the cost of fueling significant. At that point, the financially fortunate will keep driving, the middle class will bail on personal vehicles, and the less fortunate will be clinging onto public transport. If you have ever been on a bus in a third world country you know what I mean.
So… the rapid adoption of EV’s would benefit us all and it can’t come soon enough. We need to elevate adoption of EV’S to a war like effort in a addition to domicile conversion to Solar.
Personally I was never the biggest JDN fan, but hes 100% right with this comment. Most people…..even the majority of “tech-savvy” Millennials do not trust self driving vehicles.
I’m still wondering why no automaker has even looked at Diesel generation for electrification. Imagine a vehicle with a small 1-2 cylinder diesel engine that charges a small battery which, in turn powers 2-4 electric motors?? Its the best of both worlds. A car that gets 90 MPG, with the convenience/range of an ICE vehicle. PLUS, such a small motor would probably make very little emissions so there would be little need for the full DEF, DPF system that is on most HD trucks.
And yes, diesel is much more efficient than gasoline. I’m well aware that cars like this already exist, but all currently use gasoline.
I’d buy a model X if it were 20-30k cheaper and there were more charging stations. I live in a city so a home charger isn’t possible. The autopilot function is fantastic. Granted when you live in Boston, you just sit in traffic so automation just reduces the headaches of traffic. Also, nothing worse than when i walk the streets and the exhaust from trucks/cars and noise. Need to get rid of that ASAP, it’s a health hazard.
‘Cadillac “has got some really compelling electrification entries that I think are going to dramatically change people’s perception of the brand.”’
And the problem with that is like other GM concepts, the Cadillac EVs may never see the light of day. So many compelling ICE vehicles like the Cadillac Escala and Buick Avista never see the light of day and they are not based on an unprofitable EV architecture — what are the chances for the EVs?
And let’s face it, GM can’t afford to siphon ICE profits into unprofitable EVs because management is all about the bottom line.
Ford bought Rivian for a reason. GM is a lot farther along than Ford in the EV game, but I predict GM will still end up buying some electric brand when the time comes (undoubtedly not Tesla unless it tanks massively) as long as they continue to waffle like this.
“And let’s face it, GM can’t afford to siphon ICE profits into unprofitable EVs..” That’s the game plan of every manufacturer getting into the EV space right now. Except Tesla, and that’s why their situation will deteriorate.
ROFLMAO, “Consumers don’t want to buy them(EVs) in the first place.”
If the Joe Six-Packs start buying EVs, how will the Aiden Artisanal Breads signal their virtue and status?