General Motors announced plans for turning the Cadillac brand into a separate business unit headquartered in New York City.
The strategic realignment will focus on Cadillac as a luxury brand with an expansion into trendy loft offices in Manhattan for a multipurpose brand and event space.
Cadillac’s global and U.S. headquarters operations will shift to NYC next year. The management is still reviewing which staffs will remain in their current locations in the Detroit area or elsewhere and which ones will be relocated to New York.
But Cadillac’s manufacturing and assembly operations will be unaffected, and their technical product development teams will continue to remain located in Michigan for now.
Johan de Nysschen, Cadillac’s new president, said in a statement that they are very proud of their Detroit roots and heritage, and the majority of the Cadillac workforce will remain in Michigan.
But he also noted that there is no city in the world where the inhabitants are more immersed in a premium lifestyle than in New York, and added that establishing the new headquarters in SoHo places Cadillac at the epicenter of sophisticated living.
Gov. Cuomo said he welcomes Cadillac’s marketing team to New York and commended them on the decision to invest personnel and resources alongside New York’s world-class workforce. The Governor said that as the media and advertising capital of the world, New York is the ideal location for Cadillac to move its marketing operations for enhancing their brand and spurring future growth.
NYC Mayor Bill de Blasio said that there’s no better home for an iconic American company than an iconic American city.
U.S. Senator for New York Chuck Schumer likewise noted that having an iconic American brand like Cadillac choose Manhattan for its global headquarters is another example that the city is a growing hub of innovation.
The Cadillac Automobile Company was created in 1902 to take over the operations of the dissolved Henry Ford Company. The Cadillac brand is now the second oldest American automobile brand after the Buick.
GM acquired the company in 1909, and Cadillac now has operations in over 40 countries, including assembly plants in Detroit and Lansing, MI; Arlington, TX; Oshawa, Canada; Ramos Arizpe, Mexico; and in Shanghai, China.
An expanded product portfolio and a 75 percent spurt in China sales for the year to-date led to a 28 percent global growth in 2013, and 10 percent to-date for this year.