Cadillac Leaving New York and Bringing Headquarters Back to Michigan
UPDATE 9/26/18, 3:45 p.m. This story has been updated to reflect additional details, plus official statements from General Motors.
Cadillac's swanky, hipster-friendly headquarters in Manhattan is about to clear out for a similar destination: Detroit.
As confirmed by Cadillac CEO Steve Carlisle to employees on Wednesday, Cadillac will move most, if not all, of its 110 employees in New York back to GM's Detroit headquarters as part of continuing shakeups since Johan de Nysschen resigned as CEO in April. The move begins next April, GM spokesman Pat Morrissey told C/D.
In a statement, GM said closing Cadillac's New York headquarters will "further support one of the most aggressive on-going product expansions in the brand’s history, with the introduction of a new vehicle every six months through 2020." All employees will be offered to relocate their positions to Warren, Michigan, where Cadillac will maintain a separate building on the GM Technical Center campus.
"The move will place the Cadillac brand team closer to those responsible for the new Cadillacs, including design, engineering, purchasing, and manufacturing, ensuring full integration of Cadillac's global growth strategy," the company said.
Rumors doubting Cadillac's future in the SoHo district had been swirling all year despite a 10-year lease and a $1 million grant approved by New York governor Andrew Cuomo for Cadillac to move there. The idea, as de Nysschen insisted when he put Cadillac into the top two floors at 330 Hudson Street in 2015, was to separate it from GM's bureaucratic tangle and inspire marketing and sales staff to capture younger, import-minded buyers in the heart of a trendsetting neighborhood.
In reality, according to sources familiar with the announcement, Cadillac's separation was a distraction that irked top GM executives and put more stress on an already struggling brand. Sales have fallen since 2014 despite an expensive New York–based advertising campaign and a ground floor at the brand's headquarters, Cadillac House, that features clothing and art from local designers. That Cadillac chose a city where the majority of residents don't drive, let alone own a car, didn't help.
Staffing in New York had already begun to shift. Marketing chief Uwe Ellinghaus, who promoted free helicopter rides to the Hamptons, resigned in December. Earlier this year, executives in Detroit running GM's Maven car-sharing service began managing Book by Cadillac, the company’s innovative subscription service it launched and used to run from New York. Morrissey said GM had not drawn any money from the New York state grant and would work with the landlord to find a new tenant, although Cadillac House would stay "until longer-term brand plans are in place." As of now, once the office closes, no Cadillac employees will be allowed to stay in New York.
Carlisle's strategy to grow Cadillac puts him at direct odds with de Nysschen, who battled against GM brass to shake up what he considered an outdated culture. It's a simpler, less lavish concept without the New York City lifestyle: Bring everyone in the same place so they can sell more cars.
('You Might Also Like',)
