The Cadillac luxury brand is getting a trendy new address over 600 miles away from its birthplace after General Motors declared Cadillac to be a “separate business unit.”
The Cadillac headquarters in Detroit will be moved to the trendy SoHo area of New York City, according to USA Today.
The “strategic alignment” of Cadillac’s new headquarters in New York will have around 100 employees with the majority focusing on sales and marketing. Pat Morrissey, a GM spokesperson, said that no change will occur for development and technical teams or manufacturing and assembly operations.
According to GM, Cadillac’s new headquarters will make a statement by using its “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.”
Cadillac is 112-years-old, was founded in Detroit, and is named after the city’s founder. In recent years, Cadillac lost traction when put against German luxury car rivals.
Cadillac’s president since August of this year, Johann de Nysschen, issued a statement on Tuesday about Cadillac’s critical move to the Big Apple.
“There is no city in the world where the inhabitants are more immersed in a premium lifestyle than in New York. It allows our team to share experiences with premium-brand consumers and develop attitudes in common with our audience.”
According to the Associated Press, the production of Cadillac vehicles in Michigan, Texas, China, Mexico, and Canada will continue as before for now.
Allen Adamson, managing director of branding firm Landor Associates in New York, believes the move from Detroit to New York City will be beneficial and give new life to the Cadillac brand.
“You have to catch trends closer to potential buyers. There are more hedge fund billionaires in New York City than there are in Detroit. The team will be closer to the luxury market and luxury users.”
Kelley Blue Book senior analyst Eric Ibara also believes the strategic Cadillac headquarters move to SoHo will be a better way to establish the luxury company as a showroom-quality car once again.
The Associated Press reported that sales of Cadillac vehicles are up by 10 percent worldwide, and New York is the fourth-best market in the United States. However, Cadillac sales have been disappointing in comparison to competitors’ sales.
GM’s product development chief, Mark Reuss said while Cadillac is a quality product, Cadillac needs to “get some fresh thinking” for itself to survive.