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New V6 engines are only the start at Cadillac

Cadillac debuted its new family of V6 engines Friday, but that's not all General Motors' luxury brand has in store for the coming years. The six-cylinder powerplants will certainly help Cadillac in the near term, but they're just two of the many parts of the company's future strategy. GM has invested $12 billion in Cadillac to help the brand grow over the next five years, and the company will launch eight new products between now and 2020. That all starts with the launch of the CT6 flagship later this year – a fullsize luxury sedan we'll see for the first time in New York on March 31. The CT6 will introduce several new features and technologies to the Cadillac range, and with its launch also begins the slow restructuring of Cadillac's model-naming system. The new nomenclature means CT and XT badges for cars and utilities, respectively. Cadillac says that of the eight new vehicles it plans to launch by 2020, five of them will be first-time offerings in market segments where the brand currently does not play. But it's not just about new products – new powertrains are an important part of the Cadillac story, too. After the new V6 engines – a naturally aspirated 3.6-liter and a twin-turbocharged 3.0-liter engine – launch later this year in the 2016 ATS, CTS and CT6, the company says it has a strategy for V8 power – possibly a twin-turbo application – as well as future electrification. Cadillac also says it's working on adding four- and six-cylinder diesel powertrains, though it's unclear which vehicles will make use of those engines. This new six-cylinder engine family is indeed important, with Cadillac's chief engineer, David Leone, calling it the "most advanced V6 in the industry." With 335 horsepower, the 3.6-liter engine is the highest output, naturally aspirated V6 powerplant Cadillac has done – and that's SAE-certified, and on regular fuel. Beyond that, the 3.0-liter mill (pictured at right) marks the first application of GM's active fuel management system on a twin-turbocharged engine. This means that when full power isn't necessary, the TTV6 can run as a 2.0-liter V4 in order to save fuel. New transmissions are also part of the V6 engine story. GM's all-new eight-speed Hydra-Matic 8L45 gearbox will be paired to the 3.6-liter V6, and the 3.0-liter TTV6 will use the company's existing 8L90 transmission that is already found in the Chevrolet Silverado and GMC Sierra pickups (with the 6.2-liter engine).

GM laying off 510 amidst slow Cadillac, small car sales

General Motors is laying off about 510 workers from two factories beginning in January, and it could be months before the automaker needs some of that latent capacity to come back on line. A combination of poor sales and high dealer inventories are prompting the cutbacks, according to Automotive News.
The largest changes come at GM's Lansing Grand River plant, where the Cadillac ATS and CTS are made. An entire shift of about 350 workers is being laid off, but the automaker hopes to find positions for some of them at other nearby factories. The decision leaves just a single shift building vehicles there. According to Automotive News, the move is partially spurred by Johan de Nysschen's plan to make Cadillac a more exclusive brand.
The lost shift will likely return for production of the next-generation Chevrolet Camaro at the plant, according to the report, but GM isn't saying when that will be. A previous announcement from the Canadian Auto Workers union indicated that the Oshawa, Ontario, factory would lose the coupe in late 2015 or early 2016.

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.