GM's Cadillac Gets New Marketing Chief -- WSJ
March 07 2018 - 3:02AM
Dow Jones News
By Mike Colias
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (March 7, 2018).
General Motors Co. has tapped a former McDonald's Corp.
executive to give the auto maker's Cadillac brand a shot in the
arm.
Deborah Wahl, who has auto-industry experience including a stint
with Toyota Motor Corp.'s Lexus, will take over as Cadillac's chief
marketing officer later this month. The move comes 10 months after
Ms. Wahl left the same position at McDonald's amid a management
shake-up aimed at reviving the burger chain's fortunes.
Ms. Wahl succeeds Uwe Ellinghaus, a former BMW AG executive who
led Cadillac's marketing efforts for nearly four years before
leaving in December. Cadillac is expanding rapidly in China, but
its attempt at a comeback in the U.S. haven't been as
successful.
Once the dominant luxury brand in the car business and a
prominent symbol of American success, Cadillac now lags far behind
BMW, Lexus and Daimler AG's Mercedes-Benz. Cadillac has lost U.S.
market share each year since 2014, even as its sales in China --
the world's biggest auto market -- have tripled over the same
period.
A Detroit native, Ms. Wahl spent six years at Lexus, where she
worked to make the brand more upscale, including the introduction
of its first $100,000-plus offering, a hybrid sedan. She left Lexus
to take the top marketing job at Chrysler, where she worked about
18 months before the company's 2009 bankruptcy. She was later
marketing chief for home builder PulteGroup, and spent time at Ford
Motor Co.
Cadillac President Johan de Nysschen, hired in mid-2014 to lead
Cadillac's turnaround, has played down market share. Instead, he is
focused on improving Cadillac's bottom line by eliminating
marketing tactics that harmed the brand's image for years, such as
sales to rental companies and steep end-of-the-month discounts.
Cadillac's dealers, stung by sluggish sales, have expressed
frustration with the brand's marketing and have pressed Mr. de
Nysschen's team for a new direction, according to people familiar
with the matter. Although it is experimenting with subscription
services for consumers and semiautonomous driving features,
Cadillac isn't often regarded as being in a league with Tesla Inc.
or Volkswagen AG's Audi luxury brand.
Ms. Wahl's appointment comes as Mr. de Nysschen prepares
new-model introductions to fill out a thin product lineup, a
problem that has exacerbated the sales slump. Cadillac will launch
five models over the next two years, starting with the XT4
crossover SUV later this year.
Mr. de Nysschen also wants better service at Cadillac's 900 U.S.
dealerships. In an interview last year, he said the brand's primary
challenge is getting luxury buyers to consider a Cadillac, which
has improved its vehicles but has a tough time getting a serious
look from Audi or Mercedes owners. "Great brands are not built over
night," he said.
Write to Mike Colias at Mike.Colias@wsj.com
(END) Dow Jones Newswires
March 07, 2018 02:47 ET (07:47 GMT)
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