General Motors has today announced the expansion and separation of Cadillac from its parent company into an individual business unit.
The headquarters of the luxury brand is expected to be relocated from the General Motors office in Detroit to a new global head office in New York's trending district of SoHo.
A General Motor report explains that "creating a new Cadillac business unit enables it to pursue growing opportunities in the luxury automotive market with more focus and clarity."
Analysts say the latest move is part of a new business transformation strategy General Motors has employed to turn things around after Cadillac sales continue to decline despite a rise in luxury automobile sales and the fact that the company has new products on the market.
According to General Motors spokesman Pat Morrissey, the new Cadillac headquarters will concentrate mainly on marketing and sales. The facility is expected to employ about 100 workers.
Morrissey told reporters that the new facility would serve as a "multipurpose brand and event space in conjunction with modern loft office located in the heart of a city renowned for establishing trends and setting standards for the global luxury market."
A few weeks ago, General Motors announced the appointment of De Nysschen as the new head of its Cadillac business unit.
De Nysschen, who used to work for the Infiniti brand, is widely recognized for his leadership and marketing savvy which saw him revolutionize Audi into one of fastest growing brands in the luxury industry.
Many experts say that the new Cadillac expansion scheme has his hands written all over it. As part of the new changes, reports indicate that Nysschen has also introduced the Cadillac leadership council, which he will personally head.
General Motors President Dan Amman has welcomed the separation of Cadillac from its Detroit roots. According to him, it is a necessary improvement that will "provide Cadillac with more freedom to cultivate the brand in pursuit of further global growth."
He noted that "Cadillac's mission is to reinstate the brand to a preeminent position among global luxury brands".
