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Cadillac president Johan de Nysschen expands on brand's future

Cadillac president Johan de Nysschen chatted with journalists at a recent roundtable, expounding on everything from domestic racing to Chinese manufacturing. The brand's been doing a slow burn on rolling out new products and increasing sales, but admittedly, there was a lot of work to do. After closing out last year 0.8 percent down in the U.S., the domestic luxury brand is more than 5 percent up so far this year, thanks to healthy double-digit bumps for the ATS and Escalade, and increased fleet sales. Globally, the brand's doing 21 percent better. The XT5 still outsells everything, though. Asked about slow sedan sales, de Nysschen cited a few reasons, one of them "energy prices," which are low enough to fuel the crossover craze. You can also read that as another admission that Cadillac doesn't have enough crossovers to please the crowds, a fact the XT4 will soon address. Yet de Nysschen also pegged the sedan malaise on "younger consumers who really are less tuned into dynamics and handling and all of those things that used to excite enthusiasts. It's more about the way cars complement and enable their lifestyle now." He topped that with a take on U.S. roads, saying, "I also have to say it may also be influenced a little bit by the decay of America's infrastructure. When roads no longer support high-performance sport sedans and ultra-low-profile rubber, people are going to respond to it." Those latter takes seem wide of the mark. Yes, BMW is the established leader, but the Munich carmaker sold 8,806 3 Series' so far this year in all variants, compared to 2,543 ATS coupes and sedans. Mercedes-Benz has sold 8,366 C-Class models so far in all variants. As for infrastructure, yes, it's a mess, but AMG sales rocketed up nearly 50 percent in the U.S. last year, nearly 10 percent of overall Mercedes sales, and the Three-Pointed Star expects that to rise again this year. People are buying sedans and performance models. They simply aren't buying enough of them with Cadillac badges. Cadillac has no plans to go racing in Europe since the brand doesn't have the kind of presence there to justify the investment. De Nysschen said they'll stick with the Daytona Prototype International formula in the U.S. domestic scene, and continue with the tech transfer from race to road.

GM moving international sales HQ to Singapore from Shanghai

General Motors has announced that it will be moving its international headquarters from Shanghai to Singapore, a move that will see 120 employees working from the city-state by the time business opens in 2014. Meanwhile, 250 to 300 of the employees at the Shanghai office will remain in China, according to a report from The Wall Street Journal.
The shuffle is part of a bigger reorganization that will see GM isolate its operations in the People's Republic from its broader international efforts. This sort of divide-and-conquer strategy will allow GM to still react to emerging markets while, according to the WSJ, providing a dedicated management team for the Chinese market. The team in Singapore will be responsible for operations in Africa, southeast Asia, Australia, India, South Korea and the Middle East, on top of managing Chevrolet and Cadillac in Europe, according to a statement from GM.
The shift to Singapore "will help us to create a renewed identity for CIO (Consolidated International Operations) and lead GM's umbrella strategy for the region," said GM Executive Vice President of CIO, Stefan Jacoby.

Cadillac's Butler announces surprise departure

The Detroit Free Press is reporting that Cadillac's vice president of global strategic development, Don Butler, has resigned. Butler has held the position since April, after a term as vice president of US marketing for General Motor's luxury brand.
As the report explains, the timing here is pretty unfortunate for Cadillac. Butler is the third high-profile member of Cadillac's brass to depart in recent months, following the firing of US sales boss Chase Hawkins and the pending departure of Susan Docherty. Cadillac spokesman David Caldwell told the Detroit paper, "Bob [Ferguson]," global boss for Cadillac, "and other leaders asked him to stay on. Don's here in the office today - and told our team that his decision is purely on a personal level. After three years of putting everything into Cadillac, he is stepping away for some personal time, and to consider new avenues in his life."
Butler says his decision is part of a decision to "recalibrate, reassess my priorities." Whatever the reason, it's an unpleasant surprise for Cadillac, which has been on a surge in 2013, with 30-percent jump in sales on the heels of the hot-selling ATS.