GM To Move Cadillac Headquarters To New York




General Motors (GM) reported it plans to move its luxury branch out of Detroit and into New York. It was also reported that Cadillac will be operated as a separate business from GM. The move will take Cadillac to the trendy SoHo area of New York City in 2015.

“With the relentless upward repositioning of successive new-generation Cadillac products, the next logical step is to provide Cadillac more freedom to cultivate the brand in pursuit of further global growth,” said GM President Dan Ammann. “Cadillac’s mission is to reinstate the brand to a pre-eminent position among global luxury brands, a bold challenge requiring a distinct and focused new organization. More than a division or brand, Cadillac is becoming a center of excellence for our company.”

Cadillac’s current president, Johan de Nysschen, who has been with the company since August, had built Audi of America into one of the fastest-growing luxury brands, USA Today reported.

GM stated that the plan includes expansion to New York City in the form of a multipurpose brand and event space in conjunction with modern loft offices located in the heart of a city. The majority of functions with oversight and responsibility for both global and U.S. operations will be located at the new global headquarters, but there will be no change to technical product development teams located in Michigan, nor does the plan impact manufacturing or assembly operations, according to GM. Cadillac management is reviewing options for which specific staffs will be based in New York and which will remain in current locations in the Detroit-area or elsewhere.

Cadillac has operations in more than 40 countries. The brand’s ongoing growth has been driven by an expanded product portfolio, leading to 28 percent global growth in 2013 and an increase of about 10 percent so far this year. Cadillac sales in China have grown 64 percent year to date.

“We are very proud of our Detroit roots and heritage, and the majority of the Cadillac workforce will remain in Michigan,” de Nysschen said. “But there is no city in the world where the inhabitants are more immersed in a premium lifestyle than in New York. Establishing our new global headquarters in Soho places Cadillac at the epicenter of sophisticated living. It allows our team to share experiences with premium-brand consumers and develop attitudes in common with our audience.”

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