Cadillac president departs as turnaround hits snag
General Motors replaced the head of Cadillac on Wednesday as the luxury car brand’s turnaround struggled to gain momentum.
GM said Cadillac President Johan de Nysschen is leaving the company, effective immediately. He has been replaced by Steve Carlisle, who most recently served as president and managing director of GM Canada.
De Nysschen, who previously served as an executive at Volkswagen’s Audi, is leaving Cadillac at time when U.S. sales continue to trail rivals such as Mercedes-Benz and Lexus, although sales in China have surged.
Cadillac has the potential to generate stronger profits for GM, especially as luxury buyers flock to SUVs. But Cadillac has been slow to expand its SUV lineup, and de Nysschen’s decision to raise prices reportedly created friction with dealers.
“SUVs make up 58.7% of luxury sales right now and Cadillac should be in an ideal position to capitalize on it, yet they’re caught playing catch-up,” said Jessica Caldwell, executive director of industry analysis at Edmunds.
In a statement, GM President Dan Ammann thanked de Nysschen for “setting a stronger foundation for Cadillac,” adding that installing a new Cadillac boss will accelerate the brand’s efforts to compete better with luxury rivals.
“Looking forward, the world is changing rapidly, and, beginning with the launch of the new XT4, it is paramount that we capitalize immediately on the opportunities that arise from this rate of change,” he said.
GM touted Carlisle’s success running the Canadian business, saying the company was ranked first in automotive retail sales in the country last year. The GM veteran joined the company in 1982 and once served as vice president of U.S. sales operations.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GM | GENERAL MOTORS CO. | 53.71 | +1.90 | +3.67% |
“I look forward to building on our current momentum as we continue on our mission to position Cadillac at the pinnacle of luxury,” Carlisle said.
Travis Hester, currently vice president of global product programs, will replace Carlisle as the head of GM Canada.