UPDATED: 4/19/18 7:21 am ET - adds details
General Motors, seeking a faster turnaround at its flagship luxury brand, appointed Steve Carlisle president of Cadillac, replacing Johan de Nysschen, who is leaving immediately.
De Nysschen, 58, was a $12 billion plan to expand Cadillac's product lineup and was given unprecedented freedom, including moving the venerable luxury brand's headquarters out of Detroit to New York City and operating separately from GM’s core brands.
De Nysschen, in an interview Wednesday with Bloomberg News, said he left amicably and declined to go into details on what prompted his departure.
“We agree to disagree and we move on,” de Nysschen told Bloomberg. “There wasn’t a fight. Let’s call it philosophical differences.”
He became president of Cadillac after stints as head of Nissan Motor Co.'s Infiniti brand and chief of Audi's U.S. business.
The abrupt change, according to two people familiar with the decision, was a result of de Nysschen’s reluctance to accelerate product and operating plans and capitalize on current U.S. market conditions, where industry sales remain healthy. GM executives, the sources said, acknowledge that it takes time to rebuild a brand but there needs to be more commitment to the here and now, rather than the future.
“We appreciate Johan’s efforts over the last four years in setting a stronger foundation for Cadillac,” GM President Dan Ammann said in . “Looking forward, the world is changing rapidly, and, beginning with the launch of the new XT4, it is paramount that we capitalize immediately on the opportunities that arise from this rate of change. This move will further accelerate our efforts in that regard.”
Carlisle, 55, will be at least the fifth head of Cadillac since GM’s emergence from bankruptcy in July 2009.
De Nysschen’s abrupt departure comes less than four months after Uwe Ellinghaus, Cadillac's chief marketing officer, left the brand for “personal reasons.” Auto marketing veteran Deborah Wahl replaced Ellinghaus last month.
The leadership change is not expected to impact Cadillac’s future product plans and Project Pinnacle, an ambitious -- and contentious -- program spearheaded by de Nysschen to overhaul the brand and its retailers. The brand's annual U.S. sales have declined 11 percent since 2015, de Nysschen's first full year at the helm.
The long-term Project Pinnacle program has drawn the ire of many U.S. dealers and yielded little results on the sales front, as Cadillac's sedan-heavy lineup has largely struggled in a market shifting to light trucks, notably crossovers.
Cadillac's U.S. sales dropped 8 percent in 2017 -- the second straight year of decline -- though the brand continues to surge in China. Through the first quarter, Cadillac’s U.S. deliveries rose 8.1 percent with the help of heavy incentives on slow-selling models.
Cadillac, once the top-selling luxury brand in the U.S., has also fallen well behind Mercedes, BMW and Lexus in recent years.
"There’s no question Johan is a visionary automotive leader, but given GM’s conservative culture he may have pushed things a step too far," said Jessica Caldwell, executive director of industry analysis at Edmunds. "It feels like Johan spent too much time chasing the German brands instead of embracing Cadillac’s unique heritage."
From co-op student to Canada
Carlisle began his GM career in 1982 as an industrial engineering co-op student and was most recently president and managing director of GM Canada.
He took the helm of GM Canada on Nov. 20, 2014. The company's Canadian sales grew to 302,826 vehicles in 2017, up 21 percent from 249,800 in 2015, Carlisle's first full year as president of GM Canada.
GM said Carlisle, who has also steered the company's global product planning and U.S. sales operations, and is former president and managing director of the company's southeast Asia operations, will report to Dan Ammann, as de Nysschen did.
Caldwell said the appointment of Carlisle, with a strong pedigree of global expertise, product planning acumen and history of building relationships with dealers, "speaks to the company’s desire for a more back-to-basics, comfortable approach."
GM, in a statement, said Carlisle has led a resurgence of the company's Canadian sales operations, with Buick, GMC and Cadillac delivering record annual retail volume in 2017.
"Carlisle also reestablished key relationships in Canada with retailers, employees and government officials," GM said.
Carlisle, in a statement, said he “looked forward to building on our current momentum as we continue on our mission to position Cadillac at the pinnacle of luxury.”
Travis Hester, 46, currently vice president for global product programs at GM, will succeed Carlisle as president and managing director of GM Canada.