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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.

Cadillac won't replace XTS after 2019

Cadillac wouldn't be Cadillac without a large sedan, but the definition of just which model fits that bill changed last week. Before the New York Auto Show, that role fell to the XTS. After the New York Auto Show, though, the focus shifted to the CT6. So what's to become of the XTS now that the CT6 has emerged? According to the latest intel, it'll live out the rest of its lifecycle until around 2019, but then drive off to its own funeral like so many limousines and hearses that were built off its platform. This was learned based on comments made by Cadillac chief Johan de Nysschen at the closed-door unveiling of the CT6 in Manhattan: "Ultimately, a car like XTS when it reaches the end of its lifecycle, will not be replaced." That'll be bad news for the livery business that – in the post-Town Car era – has come to rely on the XTS as the basis for its stretch jobs. "We will not have a car that will lend itself to these kind of modifications and we will probably withdraw from those markets," de Nysschen told GM Inside News. That's not all the new Cadillac boss had to say, though: he also indicated that the replacements for the ATS and CTS will be positioned differently from the current models: "As we move into the future refining our sedan portfolio, there will be no direct successor to the CTS. There will be no direct successor to the ATS. There is no point to renaming those cars because in the future those cars will disappear." Based on Johan's comments and those we've heard until now, we'd expect the replacement for the ATS to move down a size to take on the likes of the Audi A3 and Mercedes CLA, and the CTS' successor to move down half a size class as well to give the new CT6 a bit more breathing room, and possibly an even larger flagship sedan to be positioned above them all. Related Video:

GM slashes prices in China as sales falter

Buying a vehicle from General Motors' stable of brands might be a lot cheaper in the near future – at least for customers in China. The effort comes as GM hopes to keep sales there growing, and the decision alludes to yet another sign that the Asian country no longer has the booming auto market of past years. GM and its Chinese joint venture partner SAIC are slashing prices by as much as the equivalent to $8,700 on 40 models from Buick, Chevrolet, and Cadillac, according to The Detroit News. Across all of automaker's nameplates, the overall sales dipped in China in April by 0.4 percent to 258,484 vehicles. Among the drops, Buick was down 8.5 percent, and Chevy shrunk 5.6 percent. Caddy's numbers increased 4.6 percent for the month, though. Buick remains a popular brand in the minds of Chinese consumers, but according to The Detroit News domestic automakers there are starting to eat into the dominance of foreign companies in the market. The country remains important for GM, though. Late last year, it outlined a future strategy that included China as a major pillar, including a $14 billion investment to build five new factories and boost sales. News Source: The Detroit NewsImage Credit: Alexander F. Yuan / AP Photo Buick Cadillac Chevrolet GM Car Buying Car Dealers saic