NEW YORK (TheStreet) -- Cadillac is a proven luxury vehicle brand, but it will take many years for it to regain its status as one of the undisputed top brands in the world. That's according to Johan de Nysschen, president of Cadillac, who spoke with TheStreet TV at the Los Angeles Auto Show.
De Nysschen didn't mince words when it came to Cadillac, the flagship luxury brand from General Motors (GM) . Cadillac is not always at the top of the shopping list for customers buying in the higher price range, he told TheStreet's Ruben Ramirez.
There needs to be a balance between production and pricing, in order to preserve long-term sustainable growth, de Nysschen explained. Tighter supply will help that cause -- and Cadillac announced that it will cut one shift from its Lansing, Mich., Cadillac assembly line, which produces ATS and CTS cars.
"It costs a lot of money to produce cars of this caliber," de Nysschen said.
This of course isn't to say that Americans don't like the Cadillac brand. Instead, de Nysschen is determined that Cadillac will regain the top luxury spot it once held. That will take time, possibly 10 years or longer, he said.
The move back to the top starts with having great products, something the automaker has already managed to create, he said. And Cadillac has a clear product strategy through 2020, he explained. The company plans to attack multiple segments of the market, including the more affordable, entry-level segment, as well as the high-end premium side.
And don't forget about the red-hot crossover/SUV space. Cadillac's had success with its SRX luxury SUV model, and de Nysschen still sees opportunities in that segment of the market.
-- Written by Bret Kenwell
TheStreet Ratings team rates GENERAL MOTORS CO as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate GENERAL MOTORS CO (GM) a BUY. This is driven by a number of strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
You can view the full analysis from the report here: GM Ratings Report