Cadillac Division President Johan de Nysschen announced last week at the Beijing Auto Show that the luxury brand will aim for an 11 percent operating margin over the next decade. It is unusual for a division head to provide such details about operating margins, information typically kept close to the chest. De Nysschen declined to discuss specifics of how Cadillac will meet this ambitious goal over the next 10 years.
These projections are part of General Motors’ long term plan to revitalize the Cadillac brand and broaden its appeal. De Nysschen, a former executive at Infiniti, was hired in 2014 to help Cadillac compete with European competitors such as BMW and Mercedes. During de Nysschen’s tenure General Motors CEO Mary Barra has given him broad leeway to operate Cadillac semi-independently from the rest of the company. In 2015 Cadillac moved its corporate headquarters from Detroit to New York City as part of its ongoing efforts to differentiate the brand from the rest of the General Motors lineup.
While at the Beijing Auto Show de Nysschen also predicted 25 percent growth for Cadillac in China over the next year. This translates to over 100,000 units sold across the country. While Buick has had success in the Chinese market over the past few years, Cadillac has struggled to break into the emerging market for luxury cars in China.