General Motors has announced a “strategic realignment” that places Cadillac as a more autonomous branch of the automaker. Cadillac will become its own business unit, yet still ultimately report back to GM. Adding to the autonomy, Cadillac is moving its global headquarters from Detroit to New York City, with the facilities set to open in 2015.

The news comes after Johan de Nysschen’s installation as president of the Cadillac brand in August. This isn’t Nysschen’s first rodeo, however, as he oversaw a similar departure of the Infiniti brand away from Nissan.

GM President Dan Ammann says that with Cadillac’s upward repositioning, “the next logical step is to provide Cadillac more freedom to cultivate the brand in pursuit of further global growth. He continued by saying, “Cadillac’s mission is to reinstate the brand to a preeminent position among global luxury brands, a bold challenge requiring a distinct and focused new organization.”

This trend of premium-brand separation isn’t new. Other luxury brands such as Audi and Maserati have headquarters separated from their respective Volkswagen and Fiat leadership. Even Ford had its premium brands separated, back when it still had control of Land Rover, Jaguar, Aston Martin, and Volvo.

Cadillac’s new headquarters will be located in the Soho area of Manhattan with offices and event spaces. Set to open sometime in 2015, Nysschen and GM still have to determine what personnel will make the move, and which will stay with Cadillac’s technical operations in Detroit.

Click past the jump to read more about Cadillac’s expansion plans.

Why It Matters

With Cadillac continuing to move upward in the world of automotive luxury, this move should help solidify the brand’s autonomy from General Motors — a company that doesn’t have the shiniest reputation these days. Cadillac’s business separation should help it make decisions more quickly and enable it to create bolder designs. If history tells us anything, the move is positive, but only time will tell if Cadillac can pull it off.

Press Release

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.

View the full press release Hide press release
Press release
What do you think?
Show Comments
Car Finder: