Cadillac News: Cadillac Packs Up Headquarters, Heads To New York

[William Maley]

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Cadillac is undergoing a number of changes. From the appointment of a new head to new models heading out to dealers, and more that are to be revealed. Now, the luxury automaker is moving to a new home.

Yesterday, General Motors announced that Cadillac will be moving to a new headquarters in New York City. The new HQ will be located in the SoHo area with a "multipurpose brand and event space in conjunction with modern loft offices." At this time, Cadillac is deciding who will move to the headquarters at this time. However, technical operations will remain in Michigan. The move is expected to finish up next year.

“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. 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,” said GM President Dan Ammann.

Along with the move, General Motors also announced that Cadillac will be spun off as a separate business unit. This means the brand will have a bit more independence.

Source: General Motors

William Maley is a staff writer for Cheers & Gears. He can be reached at [email protected]or you can follow him on twitter at @realmudmonster.

Press Release is on Page 2

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Cadillac Expands to Become Separate Business Unit, Adds New York Headquarters

NEW YORK – As part of the continued expansion of Cadillac, General Motors today announced a strategic realignment that will establish the flagship brand as a separate business unit. In addition, the new Cadillac organization will expand to New York with a new global headquarters opening in 2015.

The realignment affirms Cadillac’s importance to GM’s strategy. Creating a new Cadillac business unit enables it to pursue growing opportunities in the luxury automotive market with more focus and clarity.

“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,” Ammann said. “More than a division or brand, Cadillac is becoming a center of excellence for our company.”

Johan de Nysschen, who joined Cadillac as its new president in August, will be responsible for the brand’s overall operational performance.

Cadillac’s leadership council is headed by de Nysschen, and consists of Jim Bunnell, vice president of sales and service; Uwe Ellinghaus, chief marketing officer; David Colasinski, chief financial officer; David Leone, executive chief engineer, and Andrew Smith, executive director of design. Further expansion of the Cadillac leadership team will be announced later.

Expansion Includes New York Headquarters

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 renowned for establishing trends and setting standards for the global luxury market.

While the majority of functions with oversight and responsibility for both global and U.S. operations will be located at the new global headquarters, there will be no change to technical product development teams located in Michigan, nor does the plan impact manufacturing or assembly operations. 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."

Company officials thanked New York Gov. Andrew Cuomo for his active support of and involvement in establishing the creation of Cadillac NYC.

"As the media and advertising capital of the world, New York is the ideal location for Cadillac to move its marketing operations to enhance their brand and spur future growth," Gov. Andrew M. Cuomo said.

"From Day One, our administration has been creating a more business-friendly environment that encourages new investments and job creation, and today is another example of how that approach is delivering results for New Yorkers. I welcome Cadillac's marketing team to New York and commend them on their decision to invest personnel and resources alongside our world-class workforce."

Said U.S. Sen. Chuck Schumer: “To have an iconic American brand like Cadillac choose Manhattan for its global headquarters is another example that this city is a growing hub of innovation. New York continues to be a magnet for the best and the brightest companies and workers alike, and as Cadillac continues on its impressive growth trajectory as a global brand, I’m thrilled it will do so based in New York City."

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[balthazar]

...spun off as a separate business unit.

 

They say everything is cyclical. This is excellent news- Cadillac was pretty autonomous up thru the 1970s, if the new GM gives Cadillac it's head' and own engineering, we could be looking at the groundwork for a true renaissance. 

[smk4565]

Separating from the mainstream GM brands is a good idea.  Cadillac needs to be more exclusive and original and break away from the pack.  Although I do wonder if this is more for show and marketing.

[G. David Felt]

It better be a true change rather than smoke and mirrors as NY is over rated, Over Priced and Reeks of DECAY!

[Robert Hall]

Should of gone to LA or SF...more forward looking than NY.

[balthazar]

From the numerous commentary I've read on this, and I would tend to agree it's probably correct; NYC is a much more global city, at least perceptually.

This is all fine & well, but a Divisional Engineering department & budget is far more significant.

 

'Cadillac Engineering' was touted in press releases a number of years ago, but I never got a firm idea of the structure of such- anyone know and details?

[ZL-1]

No clue on the details, but I guess it mostly means a separate budget so the brand can have more independence in sourcing vehicle systems.

Edited September 25, 2014 by ZL-1

[balthazar]

Sounds excellent, now they need to get a quality person heading the Division, and I'm getting very little impression the current head is it.

[Drew Dowdell]

The current guy is a sales and marketing drone... nothing more.

[G. David Felt]

So in other words, they got a talking head with no real passion about the auto product line or any real knowledge of the auto's and use cases by the end users.