Friday, April 05, 2019

Moving the brand headquarters... has it been just to make corporate leadership more comfortable because they refuse to live in Detroit, which has nothing to offer multi millionaires? Or to revive suffering brands?

GM hired Johan de Nysschen to give Cadillac a make over, and prevent it's slow circling of the drain - because he'd already proven to be very successful at giving new life to Infiniti and Audi.

Seems like a logical decision, right? Hire the makever artist who's already proven to work miracles.

Then what? Give them the rope to hang themselves? de Nysschen moved the corporate HQ of Cadillac to where the money was, and the people who buy Cadillacs... NYC.

de Nysschen’s first decision was to move Cadillac’s marketing operations and about 250 employees from Detroit to a premier West Side Manhattan address at 330 Hudson Street, between Tribeca and Greenwich Village. That project cost about $12.7 million. CEO Barra was okay with the move.

Seriously, what's the ratio of caddys sold in Detroit vs NYC... or even Michigan vs NYC?

Ok, makes sense. But then, he took to facebook, and I quote "I'm accused of moving the entire company just because I prefer to live in New York".. well, who can blame him? I was born and raised in Michigan, and I left 2 days after graduating high school, because other than family and beautiful outdoors  - there wasn't much to offer someone who needed a job, job training, and a look at the rest of the world before getting planted 6 feet under. Seriously, there are about 7 insects that just want to drain your blood, constantly, and annoy the shit out of you every waking and sleeping moment from Easter to Halloween. But there are no growing businesses, there are no available jobs for high school grads, and there are few chances to date anyone your not related to for 50 miles, unless you've got a car and a lot of gas money. 

Compare that to, oh, lets take California for example... more people than mosquitoes, no leeches, no ticks, no deer flies and horse flies. I don't think I've seen a hornet or wasp, but that might be just chance. On the other topic, I'm related to half the people in the town I grew up in, but in California? not a single relative, and more chances to date on a single city block, than in the entire high school I graduated from. Plus, you can quit, or get fired, and get another job the same week, 50 times a year. And never run out of jobs. Back in Michigan? You better keep that job, as there aren't any openings, and won't be any any time soon. 

So, de Nysschen moved Cadillac HQ to New York, and news of plummeting sales destroyed reputation faster than sound sales practices could improve it. Struggles with the dealer body over factory-mandated showroom upgrades introduced friction. Bold new marketing thrusts such as Book by Cadillac (pay a monthy fee, then order up any Cadillac model as needed) never got traction. Expensive advertising campaigns showing emaciated, scraggly-bearded, tight-jacketed metrosexuals posed in rain-drenched back alleys, urging the viewer to Dare Greatly—at what?—flopped miserably.

https://www.roadandtrack.com/new-cars/car-technology/a19863777/why-johan-de-nysschen-failed-at-cadillac/

And in 4 years, the experiment to revive Cadillac was over, de Nysschen left General Motors 

He unapologetically challenged leadership and the Cadillac team, while drawing the ire of many U.S. dealers with an ambitious -- and contentious -- Project Pinnacle plan to overhaul the brand and its retailers.

In the end, GM couldn't change de Nysschen and he didn't change Cadillac quickly enough to satisfy GM's top brass, who replaced him with GM veteran Steve Carlisle, head of the company's Canadian operations.

https://www.autonews.com/article/20180419/OEM/180419730/ousted-cadillac-chief-de-nysschen-it-s-not-personal-it-s-business

Ford tried moving it's premiere auto group to Irvine... Jaguar, Aston Martin, Volvo, Land Rover, and Lincoln to share parts and engineering in order to cut costs, but just in time for the great recession, and sold off 3 of them before the 2008 bankruptcy. It still went for the govt bailout, "so it wouldn't suffer by competing with subsidized companies."

When Alan Mulally became Ford's President and CEO in September 2006, the Premier Automotive Group began to be dismantled.

 Ford sold 92% of Aston Martin, to a consortium of investors, headed by David Richards in 2007.
 In March 2008, Ford sold Jaguar and Land Rover to Tata Motors.
In 2010, Ford sold the Swedish brand Volvo Cars, the last of the PAG, to the parent of Chinese carmaker Geely for $1.8 billion.

https://www.thebalance.com/auto-industry-bailout-gm-ford-chrysler-3305670

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