Cadillac was accused of discriminating against blacks, as pretty much anything and anyone who was white could be said at the time.  They couldn't buy a Cadillac directly. A Cadillac was for successful and excellent people. Blacks were not, by definition, according to Cadillac and therefore no car was allowed to be sold to them. Cadillac's (German) service manager, Nicholas Dreystadt, noted during his visits to the dealerships  that wealthy blacks never showed up in showrooms with new Cadillacs but did take their cars to dealers for service. At first he thought it would be their white boss's car, but this was not true. He discovered that many of the black-owned Caddies were bought by white men. This was because wealthy blacks liked to own a Cadillac as a status symbol of their success. Most status symbols were not available to these people. They couldn't live in fancy neighborhoods or go to fancy nightclubs. But getting around Cadillac's policy was easy: They paid a white person to buy them a Cadillac.

​

Nicholas Dreystadt came to America in 1912 at the age of 22, after an internship at Mercedes-Benz. He liked to wear blazers instead of suits and his secretary always had a pair of dress shoes in the drawer for when he had two different ones on. He was a gifted engineer, not a real manager. So for someone like Dreystadt to barge into a GM board meeting in 1932 can be roughly compared to a Monsignor knocking on the door of the Sistine Chapel to make a suggestion to the Cardinals while they are busy choosing. a pope. In this important meeting to decide whether to liquidate Cadillac or  that the name would be saved for better days invaded Dreystadt under the guise of an idea of how to save Cadillac. Dreystadt urged GM's top executives to sell Cadillacs directly to blacks, or at least allow them into showrooms. He had given a presentation for this. Overwhelmed by Dreystadt's audacity and stunned by his proposal, the commission gave him eighteen months to develop the Negro market. By the end of 1934, Cadillac was no longer making a loss, and by 1940, sales had increased tenfold. Dreystadt was promoted to general manager of the Cadillac Division in 1934.

​

In spite of hard times, Cadillac had its hands on an extensive redesigned lineup of V8s, V12s and V16s by 1933. The boxy look of the 1920s began to give way to the streamlined look of the 1930s. Features included flowing fenders and an ornate V grille that featured a painted surround that blended seamlessly into the body. In the mid-1920s, Cadillac broke with functional design and began a period of stylish functional design led by Harley Earl. The 1933 "C" cars ushered in the era of styling and streamlining.

A facelift that was simple but surprisingly done changed the "B" cars considerably. Thus began the sales concept based on styling and the sale of replacement cars based on changes of this styling.  Innovations on the new Cadillacs included Fisher no-draft Individually Controlled Ventilation (ICV) ventilation windows. The only way to tell the difference between the 1933 V8 and V12 Cadillac is to check the decals or look under the hood. Lift the left side to check the water level in the radiator, the filler cap and oil level gauge are on the left on V12 and V16, on the right on the V8s. A V16 Sedan cost $6,250. Model year sales and production: 2,100 V8 units and 953 V12 units.

​

In 1934 LaSalle came up with a new cheaper to build model. The brand was nominated to be dropped, although it now sold better than Cadillac, but a new design by Earl resulted in a model just as revolutionary as in 1927. Technically, the V8 was replaced by an L-head inline engine from oldsmobile. The engineers replaced Lansing's cast-iron pistons with lightweight aluminum versions and tweaked a few other things. This allowed them to advertise the bike with the slogan "Built to Cadillac Standards." The chassis was shortened and hydraulic brakes were installed, something that Cadillac did not want yet, so it became a GM First at LaSalle and simultaneously at Oldsmobile. There was also independent front suspension. All of these adjustments allowed the LaSalle to sell for $650 less. A gigantic reduction. The design was thoroughly changed and was recognizable by the narrow high grill. Despite the cost savings, the quality was still of a high standard. The LaSalle was even chosen as the pace car for the Indy 500 that year. Sales doubled compared to 1933 but fell far short of expectations. Perhaps the $1,595 LaSalle looked too much like a $955 Oldsmobile in the eyes of buyers.

​

1934 Model Year Sales and V8 Production: 8318 (with 1935) 1,098 V12s and 150 V16s (including 1935). The models were completely new with a new chassis but still with the old engines introduced the year before. Lawrence P. Fisher is the director until May 31, 1934, on June 1 he is succeeded by Nicholas Dreystadt.
 

Perhaps the most influential pre-war Cadillac was born during the most difficult period in the brand's history. The year was 1934 and the prestigious part  of General Motors faced a difficult choice. The luxury car market had all but disappeared in the chaos of the Depression, and Cadillacs were no longer selling very well. That year's production was only about one-fifth of what it was in record year  1928 and the firm had been a consistent money-loser in the intervening years. Worse, the division's mid-range partner, LaSalle, didn't fare much better, but sales volume was still important to Cadillac's survival. GM protected Cadillac in the 1930s with its large size and financial strength, something its competitors did not have. But it was clear that even Cadillac would have to change if it was to be successful again. GM's management had already taken a number of measures to this end, such as reducing the number of components unique to each car. During this difficult period, a new General Manager arrived, the man who would lay the foundation for the fantastic 60-Special.

​

Nicholas Dreystadt was certainly no stranger to Cadillac. Before being promoted to the division's top position in late 1934, he had been manager of Cadillac's Clark Avenue factory for more than two years, serving as General Service Manager for six years prior. Efficiency and cost-effectiveness were his goals. As Ernest Seaholm, Cadillac's chief engineer at the time, would later recall, "Nick had us keep a close eye on everything....If someone else was making a part for two dollars, why did ours have to pay three or four times as much? cost?"

Dreystadt knew better than anyone at GM that Cadillac could literally no longer afford everything, but he was determined to maintain quality standards and technical perfection. Interestingly, a major development that would combine these conflicting goals was already in the works when he took over. It was a new monobloc V8, so named because the cylinder head was cast together with the block, so there was no head gasket. Designed under the direction of Owen Nacker and, later, John "Jack" Gordon, it was expected to be much cheaper to build than Cadillac's 353 V8, let alone its mighty 368 V12 and 453  V16. In addition, thanks to hydraulic valve lifters, it was expected to be quieter and have better performance as well as more durability. Time would tell that this smooth, strong and refined power station was so good that it would be used without major changes from 1936 to 1948. It also accelerated the farewell to the V12, which had now become quite obsolete.

​

Meanwhile, Dreystadt had taken a good look at the market. Inevitably, his attention was drawn to the $900 price gap between the new line-eight LaSalle, introduced for '34, and the least expensive Cadillacs. The buyer could buy both a LaSalle and an Oldsmobile for the price of a new Caddy and still have enough money left over to buy a nice home audio system. The difference was even greater with Packard, still the leading American luxury brand at the time, where a thick $1,325 separated that company's new 1935 One Twenty series from its least expensive more luxurious models. It's not clear why it took so long for the bright minds at Cadillac, or Packard, to see that the market was ripe for a car to bridge this gap. As soon as Dreystadt realized this, he quickly got to work on solving it.

The answer was a new affordable model for 1936. The Series 60 with a 121-inch wheelbase, 10 inches shorter than the 131-inch chassis used for the Series 70 and Fleetwood Series 80. The 60 received the "B" bodywork that was also used by LaSalle, Buick and Oldsmobile. All Cadillacs this year featured GM's acclaimed all-steel "Turret-Top" roof construction. This replaced the roofs with fabric inserts. In addition, the large duo-servo Bendix for the hydraulic brakes appeared, this system was extra effective on the V8 models because the new monobloc engine weighs less than the old V8. Other changes included a stiffer frame, refined front suspension and a facelift performed by GM's Art & Color division led by Harley Earl. The stylish high and narrow grille and split windshield suited the new Series 60. The sleek and graceful "budget" Caddys were without a doubt the best looking models in the '36 line. Best of all, they were the cheapest cars to wear the Cadillac wreath since 1908. They were $750 cheaper than the cheapest 1935 Series 10 V8, a savings of more than 30 percent. Though cheap, the Series 60 was no less a Cadillac than its bigger brothers, something that would prove to be a huge selling point. The engine was a smaller version of that used in the large Series 70 and 75 V8 cars: 322 cid, 125 hp, compared to 346 cid and 135 hp. It drove through a redesigned transmission so smooth, shifting fast and durable that it would become an absolute favorite among hot rodders. "Knee-Action" independent front suspension was a first  in 1936, even in the luxury segment, but the Series 60 had it, a plus for passenger comfort.

What Cadillac now had was a whole new kind of car: a high-quality, prestigious package with compact dimensions, fast and powerful, easy to handle and priced within reach of many Buick and Chrysler buyers. It was to be expected that the Series 60 Cadillac would make a fortune. Something the LaSalle didn't do. Sales increased an astonishing 254 percent, with the new model accounting for more than half of Cadillac's model year production.

​

The Coupe started at $1,645, A radio cost $54.50. The Series 60 was replaced by the 61 in 1939, but the 60 Special continued into the 1990s.  The 1936 Cadillac V16 (Series 36-90) was a continuation of the 1935 cars. Built to order, nearly half of the fifty-two units were 7 seater versions. At the other end of the model range, LaSalle was troubled by Packard's One-Twenty. A cheaper car with more power, less weight, and just as much allure for $450 less in 1935. LaSalle's 1936 price cut of $320 didn't help. Packard sold four times as many cars as LaSalle.  Model year 1936 was introduced in October 1935. Model year sales and production of the line 8 36-60: 6,712 units. The V8 5,248., the V12 901, and 52 V16s. In 1936 the models were named for the first time since 1914 in conjunction with the year: 'The New 1936 Cadillac'. In 1937 a base 8 cylinder Series 37-60 Fisher body with 124 inch wheelbase cost $1,545. 13,636 of the 8 cylinders were sold. A V12 starts at $3,345 and 478 are sold. 1937 was the last model year for the overhead valve V16 engine. For the first time, hydraulic brakes (with a vacuum booster on the pedal) were used on these cars. A stabilizer bar was added to the front suspension. A handy oil filter replaced the Cuno self-cleaning unit. 50 were sold that year.

​

Another significant event in 1936 was the arrival of 23-year-old William L. (Bill) Mitchell as head of Cadillac's design studio. In January of that year, Mitchell's mentor instructed him to create a new model based on the Series 60, but more spacious, luxurious and stylish than any previous Cadillac. The result could already be shown less than two years later.

The performance of the new 346 engine was impressive.

Cadillac chose the 346-cid version of the monobloc V8 from 1937 for all its eight-cylinder models. With 135 horsepower at 3400 rpm, the 346 had five horsepower more than the 1935 V8 and 10 more than the 322 monobloc delivered just one year. For 1938 Cadillac delivered five models. The first four (Series 38-60, 38-60S, 38-65 and 38-75) were eight cylinders and the 38-90 was a V16. The V12 Series 85 was dropped this year. The compression ratio of the Series 75 was increased to 6.70:1, necessitating the use of high-octane fuel. The Cadillac Series 90 for 1938 was essentially a Series 75 with a V16 engine. Although the wheelbase was thirteen centimeters shorter, the bodies were equal to or larger than previous Cadillac V16s in all dimensions. This was achieved by locating the nearly flat engine low in the frame and partially behind the firewall line. V16s are distinguished from their V8 counterparts by a coarser grille, fender lights and streamlined louvers on the hood side panels and fender skirts.

The LaSalle was very similar to the Series 60 of 1936. It got a V8 again, now that the 322 monobloc L-head used by Cadillac for only one year. It had 125 horsepower and a longer wheelbase. He had become a real competitor for Packard's One-Twenty again. With its new design, LaSalle sold 32,000 copies, partly at the expense of Cadillac's same Series 60.

The new V16 engine had an L-head, short stroke, square design, cast block with 135 degrees V. With each block balanced, the engine was essentially a twin-eight. Many things were duplicated such as carburetors, oil bath air purifiers, manifolds, distributors, coils, fuel pumps and water pumps. The fuel pumps were interconnected so that both carburettors could supply fuel when needed. Only the left distributor contained contact points. The right distributor only supplied high voltage to the spark plugs on the right side. A cross pipe connected both exhaust manifolds and fed into a single down pipe on the left. 315 were sold.