Cadillac Aims to Become Its Own Business Unit by 2017

Cadillac brand President Johan de Nysschen tells analysts the General Motors Co. until will become a separate business unit in two years, Automotive News reports.

GM announced last September its plan to make Cadillac an independent unit with its own balance sheet. De Nysschen says the step is an essential part of creating a corporate culture that will help restore the brand as a global luxury marque.

Cadillac hopes to hike sales to 500,000 by 2020 from 263,700 in 2014. To achieve that goal, de Nysschen says, the brand must bolster its image, roll out more models and adopt a richer pricing structure. He also has advised dealers their sales volume will drop until the strategy gains traction.

De Nysschen promises a "massive" array of new products, including more crossover vehicles, but not until 2018. In the meantime, he says the company is trying to position the brand as more contemporary and youthful. He adds that Cadillac may adjust dealer incentives to put more emphasis on brand image-building and less on sales volume.