1992 Cadillac Brougham 1992 Cadillac Brougham Hearse 41k Orig Miles on 2040-cars

Auto blog

GM Cadillac chief: New CT5 will replace 3 sedans; EVs coming

DETROIT - The head of General Motors' Cadillac luxury division said on Thursday the brand will shrink its lineup of sedans and expand its offerings of sport utility vehicles and hybrid and electric vehicles in response to market shifts. Expanding Cadillac's global sales is central to GM's overall profit strategy, and Cadillac has reported a 27 percent increase in worldwide sales through the first half of the year. However, in the United States, now the brand's second largest market behind China, Cadillac sales are down 1.6 percent and combined sales of the brand's four sedan models have plummeted 16.3 percent through the first half of the year. That has forced GM to order layoffs at two Michigan factories that build Cadillac cars, and raised questions about the long term future of the plants. "We have to rebalance our sedan portfolio," Johan de Nysschen told Reuters in interview, offering new details about the strategy. Cadillac will not directly replace the current XTS, CTS or ATS sedans when they end their life cycles in 2019, he said. Instead, Cadillac will use a single new car called the CT5 to appeal to consumers shopping for sedans priced between $35,000 and $45,000. New versions of the CT6 sedan will be offered to customers who want a larger car starting at $50,000. Sources had told Reuters last week that GM was considering ending production on six cars including the CT6 and XTS and models from Chevrolet and Buick. That report now appears only half-right as far as Cadillac is concerned. The new CT5 will be built at a factory near Lansing, Michigan, that currently builds the slow-selling Cadillac ATS and CTS models. A small luxury sedan to compete with the Audi A3 will be built in the same plant, de Nysschen said. Cadillac will offer more SUVs, starting with a compact model called XT4, followed by a larger SUV with three rows of seats due by 2019 to compete with vehicles such as Volvo's current XC90 model. Volvo, owned by China's Zhejiang Geely Holding Group, scored a public relations coup by announcing plans earlier this month to power all its vehicles with either hybrid or all-electric technology starting in 2019. The move challenges Tesla, which has eclipsed more established brands with tech savvy luxury buyers. Cadillac has plans "not dissimilar to what Volvo has announced," with more electrified vehicles launching in the second half of the next decade, de Nysschen said.

Johan de Nysschen tells his side of the story

Automobile snagged time with ex-Cadillac, Infiniti, and Volkswagen of America boss Johan de Nysschen. General Motors decided to part ways with de Nysschen on April 18, 2018, after the German spent four years in charge of America's luxury brand. The longtime auto exec is a polarizing figure for enthusiasts, who seem to take a mostly negative view of his work at Infiniti and Cadillac. However, there's no denying de Nysschen is frank, and in the Automobile interview he puts an insider's perspective on a big bag of issues we can only speculate on. One of the biggest bombshells in the interview was that it wasn't de Nysschen's idea to move Cadillac to New York: "When I was recruited, I was informed that the company would relocate to New York," he said. Previous GM CEO Dan Ackerson had made the decision before hiring de Nysschen, then Ackerson let his new hire make the announcement. The big change came only two years after de Nysschen had taken over Infiniti after insisting Nissan's luxury brand move to Hong Kong. De Nysschen explained Cadillac's NYC move with the same rationale as Infiniti's Hong Kong move, so everyone assumed the new guy was doing his usual. He explains in the interview that after the move, "Folks who rooted for Detroit felt betrayed. Cadillac had an enemy." And that became a problem. He has nothing bad to say about GM or Cadillac, believing on the contrary that "GM is in a good position going forward." But he brought clarity to some of Cadillac's struggles. Among the issues was GM's "very vigorous" post-bankruptcy test for green-lighting a project. Another was the lack of specialization for the luxury arm. "Engines were generically developed with the Chevy brand in mind," he said, "and, then, 'Okay, well, yeah, it's good enough for Cadillac.'" That carried over into haphazard technology rollouts. "GM didn't have a specific technology roadmap aligned to particular brands," he said. "The process was, as they were developing new technologies, they would look at what product's launch date would be aligned with the maturation date and market readiness of a technology and go with it, whether Buick, Chevy, or what have you." De Nysschen worked to end such generalized approaches, which is how we get Cadillac taking the GM lead on technology and electrification.

GM says EVs are the future — but trucks are going to take it there

In the PowerPoint deck for the General Motors Capital Markets Day presentation, one of the more disturbing things comes early on, during GM President Mark Reuss' initial remarks, in an area where he is discussing the company's overall strength in trucks. The point being made is that GM has a truck for all and sundry. And there it is, a phrase on a slide that should send chills up the spines of those who still pine for the old Bob Seger "Like a Rock" Silverado ads: "Little bit country. Little bit rock 'n' roll." That's right. Donny and Marie. Somehow the Denis Leary snark in the F-150 ads is all the more appealing. The Capital Markets Day presentation was chock full of observations about electrification and automation (Reuss and CEO Mary Barra both noted that the corporation's vision is one of "Zero Crashes. Zero Emissions. Zero Congestion." Dan Ammann talked about the progress being made at Cruise Automation; Reuss rolled out the plan for an array of electrified vehicles, with a luxury EV and a compact SUV being the "Centroid Entries" for the modular bases of many others). But it is worth noting that there is no getting away from the power of pickups in the U.S. market, as that was the central topic in Chief Financial Officer Dhivya Suryadevara's comments, with "Truck Franchise" being flanked by "Key Financial Priorities" and "Financial Outlook." Clearly, to gloss the old phrase, the truck segment is where the money is. Suryadevra enumerated how the truck segment is significantly different than other types of light vehicles. Among her points: GM, Ford and FCA have more than 90% of market share. The truck parc has been growing and aging over the past 10 years. Customers are fiercely loyal to the segment—as in 70% of truck buyers are truck buyers. A good number of the vehicles are for commercial use (40 percent). Trucks are "less prone to. . .mobility disruption." Trucks offer high margins. Translaton: The segment is one that they're solidly positioned in. There are lots of old trucks on the road that will need to be replaced by new ones. Perhaps buyers may switch from a Sierra to a Canyon, but it will be a truck. If your livelihood depends on that type of vehicle, even if gas prices go up or the economy begins to go south, you're going to stick with it. Most of the country isn't San Francisco, so trucks will continue to be essential. And, well, they're profitable in the extreme.