De Nysschen to Caddy Dealers: Things Will Get Worse Before They Get Better

Cadillac boss Johan de Nysschen tells dealers there will be tough times ahead as the brand attempts to shed its discount past, Automotive News reports.

In a seven-hour meeting in Las Vegas last week, de Nysschen reiterated that Cadillac's only hope of restoring its image as a prestige brand is to control output, hold the line on pricing and create a scarcity of product—none of which is happening today.

Cadillac dealers are sitting on a 132-day supply of unsold cars, more than twice the market norm and about three times the supplies of Audi, BMW and Mercedes-Benz vehicles, according to AN. Caddy sales are running 5% below year-ago levels, and the brand is offering average sales incentives of $6,400 per vehicle.

De Nysschen concedes the current oversupply of 2014 models is a big problem. He emphasizes his focus will be on the quality of future business rather than the volume.

In an unusual move, General Motors Co. CEO Mary Barra and President Dan Ammann attended the dealer meeting to buttress de Nysschen's strategy. AN says dealers appeared to be mostly enthusiastic about the change in brand direction.