Though it still has a long way to go, Cadillac is making surprising progress in making a significant contribution to General Motors’ bottom line.

Though its newest cars are getting good reviews, its new-found financial health has more to do with how the business is being run.

Johan de Nysschen, the president of Cadillac who formerly worked at Audi and Infiniti, says Cadillac now is being managed more like a start-up company. He moved operations from Detroit to New York and focused his organization on achieving three simple targets: Get more models, reduce dealer inventory and boost transaction prices.

Even though de Nysschen has been at the helm only for 19 months, his plan already is showing meaningful progress. Last year, Cadillac boosted transaction prices an average $5,000 per car. In fact, de Nysschen says Cadillac was behind only Mercedes-Benz in U.S. transaction prices. So far this year, it’s ahead of Mercedes, he claims.

As far as more models, Cadillac is adding two this year, the all-new CT6 sedan and XT5 CUV. It will introduce 11 new models over the next five years, which will significantly expand its portfolio. But AutoForecast Solutions reports the brand recently cancelled plans to make the CT8 flagship sedan.

The XT5 is a replacement for the SRX, but it should sell better, if only because the SRX now is seven years old, an eternity in the car business. The CT6 is not replacing anything, so every sale represents incremental volume.

Perhaps more importantly, the CT6 and XT5 also will be built in China. That will nicely sidestep a 25% import tax, which should goose sales in Cadillac’s fastest-growing market. Last year, it shrugged off a slowdown in the Chinese economy and posted a 17% increase to nearly 80,000 cars.

Cadillac’s efforts to reduce dealer inventory is instructive if not illuminating. De Nysschen says that having less inventory changes the conversation in the showroom. Instead of resorting to a hard sell to clear what’s on the lot, salespeople now can spend more time listening to customers and helping them order what they want.

Cadillac’s U.S. dealers ended 2015 with only a 48 days’ supply on hand. De Nysschen’s goal is to whittle that down to 30 days. So far this year, WardsAuto data shows Cadillac’s inventory levels have shot up to 78 days, so there’s clearly more work to be done.