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Cadillac snags de Nysschen from Infiniti, names him new president

Johan de Nysschen, the (now former) president of Infiniti, has officially jumped ship. The 54-year-old, who also spent time as the chief executive for Audi USA, has taken the position of president at Cadillac, following a two-year stint at the Nissan-owned luxury brand. In his new role, the 54-year-old will be responsible "for all aspects of Cadillac globally," according to a statement from General Motors.
"Johan brings to our company vast experience in the development and proper execution of luxury automotive brands," said GM President Dan Ammann, de Nysschen's new boss. "With over 20 years in this exact space, especially in the development of the Audi brand, his track record proves he is the perfect executive to lead Cadillac for the long term."
"I have for some time now been impressed by how the new General Motors has been transformed into a formidable force in the industry," de Nysschen said in a statement. "The combination of strong corporate leadership and exceptional engineering resources presents the perfect combination to restore Cadillac to its place among global premium brands."

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.

A few signs that Cadillac's revival is taking hold

Only a flatworm would not have predicted the Cadillac ATS would help increase sales for America's erstwhile luxury brand of record; however, even the best automotive oracles didn't realize by how much: The ATS fueled a 49-percent increase of the brand's year-on-year sales in March, the sixth straight month of growth for Cadillac. The momentum helped push General Motors to post a 6.4-increase in sales in March versus 2012, leading its domestic competitors.
Dealership salesmen are among the first to register the shift occurring at Cadillac. A Texas dealer related an incident in which he helped a mother affix a baby seat in a car for a test drive, explaining that as opposed to the older buyers that are still a Cadillac mainstay he's getting "a pretty diverse group that's coming through the door now" who are "younger and better educated." Aided by incentives on the ATS, Cadillac's sales are up 38 percent so far this year, overtaking Acura as the fourth best selling luxury brand, and GM stock is benefiting with incremental gains because of it. Based on early response, the new 2014 Cadillac CTS should keep things going in the same direction.
The trend at the Wreath and Crest is part of a larger sales trend happening among domestics - with other models like the Dodge Dart and Ford Fusion doing well - and overall US car sales. Head over to Bloomberg for the big picture and role the ATS plays in it.