Cadillac, long the king of Detroit’s auto brands, is abandoning Motown.
General Motors Co. GM -0.66% said on Tuesday that its struggling luxury brand will move 50 key employees and its headquarters to New York next year amid a wider effort to carve Cadillac out as a stand-alone business unit with more autonomy. Long run from Detroit, GM’s brass feels being in Manhattan will help Cadillac better reach luxury buyers.
The Cadillac move to New York has been discussed among GM’s brass for several months, but Mr. de Nysschen pulled the trigger on the relocation shortly after taking his post. Michigan Gov. Rick Snyder, speaking at an event on Tuesday, said “you wish that wouldn’t happen from a Michigan perspective,” but noted GM and other auto makers continue to house massive research and development operations in his state.
For the full article, see Jeff Bennett and John D. Stoll, “Cadillac Seeks Brighter Future in New York; Headquarters Move Comes With Reorganization of Luxury Brand’s Management”, Wall Street Journal, September 23, 2014.