Cadillac's de Nysschen won't budge on raised pricing
09-18-14, 03:48 PM
#1
Cadillac's de Nysschen won't budge on raised pricing
According to new Cadillac boss Johan de Nysschen, it will take between 10 and 15 years to elevate GM's top brand, which was once hailed as "The Standard Of The World," back to prominence in the minds of American customers. And to hear the executive talk of it, the brand is going to have to be willing to see sales falter in the near-term before they recover:
"Either you have to bring your volume aspirations into alignment with reality and accept that you will sell fewer cars... Or you have to drop the price and continue to transact at the prices where you were historically... I think the logical conclusion is that it's better to build off a very solid base in terms of [product] credibility, charge a fair price for the car and realize you have to wait until the volume comes."
In other words, sales will fall before they rise, and the brand has to be okay with that. Notice, too, that de Nysschen speaks of "a fair price" for Cadillac cars and utility vehicles. In this case, "fair" means more than many of the brand's traditional buyers are accustomed to, and roughly in line with the brands and machines Cadillac believes it is competing against. For instance, the newly enlarged 2014 CTS carries a suggested retail price that is over $6,000 higher than it was in 2013, and some trim levels boast an even higher price premium over the models they replace.
Time will tell if General Motors continues to support de Nysschen in his quest to bring Caddy up in pricing and perception to its German rivals, but at least he's being clear about the time frame and acknowledging that they are "leaving their traditional customer base" behind in the process. As the recent former head of Infiniti and a career-man at Audi before that, de Nysschen should know a thing or two about how hard it is to retrench and resurrect a damaged luxury nameplate.
Here's hoping Cadillac's upcoming range-topper is found worthy of direct comparison with the likes of the Mercedes S-Class, BMW 7 Series and Audi A8, models with which it will likely be priced directly against.
"Either you have to bring your volume aspirations into alignment with reality and accept that you will sell fewer cars... Or you have to drop the price and continue to transact at the prices where you were historically... I think the logical conclusion is that it's better to build off a very solid base in terms of [product] credibility, charge a fair price for the car and realize you have to wait until the volume comes."
In other words, sales will fall before they rise, and the brand has to be okay with that. Notice, too, that de Nysschen speaks of "a fair price" for Cadillac cars and utility vehicles. In this case, "fair" means more than many of the brand's traditional buyers are accustomed to, and roughly in line with the brands and machines Cadillac believes it is competing against. For instance, the newly enlarged 2014 CTS carries a suggested retail price that is over $6,000 higher than it was in 2013, and some trim levels boast an even higher price premium over the models they replace.
Time will tell if General Motors continues to support de Nysschen in his quest to bring Caddy up in pricing and perception to its German rivals, but at least he's being clear about the time frame and acknowledging that they are "leaving their traditional customer base" behind in the process. As the recent former head of Infiniti and a career-man at Audi before that, de Nysschen should know a thing or two about how hard it is to retrench and resurrect a damaged luxury nameplate.
Here's hoping Cadillac's upcoming range-topper is found worthy of direct comparison with the likes of the Mercedes S-Class, BMW 7 Series and Audi A8, models with which it will likely be priced directly against.
09-18-14, 06:50 PM
#5
ATS and CTS are selling below expectations and they have another 4-5 years in them.
Their story when these models came out was very different. They did not plan for slow sales with new models, they planned big expansion.
09-18-14, 06:51 PM
#6
Also not sure if you've seen the new Escalade or CTS on the road but the vertical DRL's are so striking it (like the Lexus Spindle) makes it unmistakebly a Cadillac which I hope they embrace for the rest of the line-up
09-18-14, 07:37 PM
#7
Have folks seen the new Escalade ad that starts with an elephant ride and morphs to a an upscale couple taking a scenic drive, and when they arrive at a stylish home (presumably their home), the help comes out to help with the bag (other scenario, could be the home owner coming out to assist their guest)?
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09-18-14, 08:17 PM
#9
Lexus Champion
That is one smart man. They have to bite the bullet in volume before they can bring the brand up to the level of their competitors. Sure, they can discount their cars, but once they get into that trap they will always be expected to be lower priced than their competition. I like that he is thinking ahead, and I really hope Cadillac succeeds. If they would get rid of CUE I would consider one myself.
09-18-14, 08:57 PM
#10
If he can actually get GM to cut production to match actual demand I'd be impressed. They always talk about doing this, but then they claim they're beholden to supplier contracts of union contracts and keep ramping up production, etc, etc, etc.
Hope he can get the actions, and sustain them.
Hope he can get the actions, and sustain them.
09-19-14, 05:52 AM
#12
Formerly Bad Co
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Hats of to Johan!
Cadillac isn't perfect, they know it. Their cars aren't perfect but they are a hell of a a lot better than they were a decade ago. Their are cars are almost there! The CTS is such a gorgeous car, that front end is so beautiful and that interior is nearly there, a few more years of refinement and they'll be there.
Cadillac isn't perfect, they know it. Their cars aren't perfect but they are a hell of a a lot better than they were a decade ago. Their are cars are almost there! The CTS is such a gorgeous car, that front end is so beautiful and that interior is nearly there, a few more years of refinement and they'll be there.
09-19-14, 05:31 PM
#13
Hats of to Johan!
Cadillac isn't perfect, they know it. Their cars aren't perfect but they are a hell of a a lot better than they were a decade ago. Their are cars are almost there! The CTS is such a gorgeous car, that front end is so beautiful and that interior is nearly there, a few more years of refinement and they'll be there.
Cadillac isn't perfect, they know it. Their cars aren't perfect but they are a hell of a a lot better than they were a decade ago. Their are cars are almost there! The CTS is such a gorgeous car, that front end is so beautiful and that interior is nearly there, a few more years of refinement and they'll be there.
Couldn't agree more
1st Gen brought us the CTS and layed the ground work
2nd Gen refined the shape and really boosted V
3rd Gen has an arsenal of powertrains, added VSport, dynamic front (love those vertical lights).
Future Caddy's are shaping to be real nice
09-20-14, 12:28 PM
#15
Lexus Fanatic
Originally Posted by Hoovey2411
CTS-V, ATS-V, VSport, new RWD Flagship, possible Elmiraj coupe, reworked SRX, some good things coming that can surely elevate Cadillac once again.