In a move to bolster the Cadillac brand amid competition from European luxury rivals such as BMW, Jaguar and Mercedes, General Motors said it will open a new global headquarters in New York City in 2015.
"We are very proud of our Detroit roots and heritage, and the majority of the Cadillac workforce will remain in Michigan," said Johan de Nysschen, who was named Cadillac’s president last month. "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."
In addition, GM will establish the Cadillac brand as a separate business unit within the company.
“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,” explained Dan Ammann, GM’s president. “More than a division or brand, Cadillac is becoming a center of excellence for our company.”
The announcement comes just a day after James Bunnell was named as the new vice president of sales for Cadillac. The Cadillac brand has also been shaking up its ad agency roster, dissolving the Rogue group formed in June 2013 specifically to handle Cadillac’s creative business. Sales for the brand fell 18 percent in August, and Cadillac has seen losses in five out of the first eight months of the year.
Cadillac’s new SoHo headquarters will include event space, as well as offices for staff members who relocate. The company is still determining which positions will move to the NYC headquarters, and which will remain in Michigan and elsewhere around the world.
Company officials thanked New York Gov. Andrew Cuomo for his active support of and involvement in establishing the new headquarters.
Cuomo said of the move: "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."