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Cadillac executive appointments have global flair

Cadillac has rearranged its executive suite in order to take full advantage of its sales momentum. Don Butler is moving from his role as US VP of marketing to a newly created position with the title VP of global Cadillac strategic development. It will be his job to "drive the next phase of Cadillac growth internationally," planning strategy and developing new markets.
He will be replaced by Steve Majoros, an exec poached from Chevrolet's ad agency of record, Campbell Ewald. Majoros, who has the Chevrolet campaigns "Like a Rock" and "American Revolution" on his resume, will oversee Cadillac's US and international marketing.
Another component in the brand's renewed global focus includes conducting an ad agency review. Announced last month, Fallon Worldwide remains Cadillac's agency of record, but others, said to include Campbell Ewald, will be bidding to make the creative that helps Cadillac expand sales percentages by triple digits here and in China. Scroll down below for the official press release.

Cadillac: The standard of what?

Cadillac's tagline "Standard of the World" goes back to 1908 when it won the Dewar Trophy. While you might think that the moniker and the trophy have something to do with a feat of racing and daring-do against a cadre of British, French, and German marques, it's nothing of the sort. Rather, Cadillac achieved the trophy because of interchangeable parts. The parts they were producing back then were so well-made that Henry Leland, who established Cadillac, was able to disassemble three Model Ks, mix up the parts, and then put together three functioning cars. This amazed the Brits who handed him the trophy, and the "Standard of the World" was born. During the past several months, Cadillac has been producing news releases that would seem as though the company is the Standard of the World: "Cadillac Global Sales Rise 44.2 percent in January ... 18 percent in February ... 22.1 percent in March. . .40.9 percent in April ... 33.8 percent in May ... 7.2 percent in June." Like the Dewar Trophy being about manufacturing not performance, things are not necessarily what they seem. That is, Cadillac's growth is predicated on performance in China, not in the US. Through June, its China sales are 80,357 vehicles for the first five months of 2017, versus 72,073 in the US. The China number is a 75.4-percent year-over-year increase while the US number is a 1.6-percent decrease. For the entire globe, Cadillac has sold 164,174 vehicles. Of them, 65,250 were the XT5. That was followed by the ATS, at 34,277 units. In the US, the XT5 is doing reasonably well, as it has moved 29,798 units during the first six months. The ATS, conversely, is doing not particularly well, as it is down 26.2 percent with sales at just 7,209 for the year so far. To put that into some sort of context, know that Cadillac has sold 7,370 copies of the generally derided XTS, which is down 24.7 percent. The CTS is down 36 percent at 5,059 units, and the only other car in the lineup (we'll pretend that the ELR doesn't exist anymore and it shortly won't), the CT6 sedan, is up 172.7 percent – but they have sold only 5,397 CT6s. While Caddy talks a good game about competing with the likes of the BMW 5 Series and the Mercedes E-Class, know that those two sedans have been sold 17,036 and 20,783 times this year in the US respectively. So what is Cadillac chief Johan de Nysschen to do? According to Reuters, it is to cull the lineup.

GM may kill 6 car models as it works with UAW to tackle sales slump

The president of the United Auto Workers union said on Thursday the union is talking with General Motors about the potential threat to plants and jobs from slumping U.S. car sales. GM's response will be more trucks and SUVs, and sources say at least six slow-selling car models may be killed off. "We are talking to (GM) right now about the products that they currently have" at underused car plants such as Hamtramck in Michigan and Lordstown in Ohio, and whether they might be replaced with newer, more popular vehicles such as crossovers, Dennis Williams told reporters. "We are tracking it (and) we are addressing it," Williams added. GM has cut shifts at several U.S. plants this year as inventories of unsold cars have ballooned. Industry analysts said more jobs could be at risk as the automaker wrestles with permanently shrinking production of small and midsized sedans. GM is reviewing whether to cancel at least six passenger cars in the U.S. market after 2020, including the Chevrolet Volt hybrid, which could be replaced in 2022 with a new gasoline-electric crossover model, Reuters has learned from people familiar with the plans. Other GM cars at risk include the Buick LaCrosse, Cadillac CT6, Cadillac XTS, Chevrolet Impala and Chevrolet Sonic, sources said. Some analysts have singled out GM's Hamtramck plant in Detroit as one of the most vulnerable because of plummeting car sales. The plant, which opened in 1985, builds four slow-selling models: Buick LaCrosse, Chevrolet Impala, Cadillac CT6 and Chevrolet Volt. In the first half, it built fewer than 35,000 cars, down 32 percent from the same period in 2016, according to suppliers familiar with GM's U.S. production schedule. The typical GM assembly plant builds 200,000-300,000 vehicles a year.COMING ATTRACTIONS: TRUCKS AND SUVS GM must "create some innovative new products" to replace slow-selling sedans "or start closing plants," said Sam Fiorani, vice president of AutoForecast Solutions. The auto maker already has begun to shift future production plans from cars to trucks, according to Morgan Stanley auto analyst John Murphy. He estimates that fewer than 10 percent of the new vehicle models that GM will introduce over the next four years will be passenger cars, with the rest divided among trucks, SUVs and crossovers. GM plans to add production of the new Cadillac XT4 crossover next year to its Malibu sedan plant in Fairfax, Kansas.