Cadillac is being split into its own business unit away from parent company General Motors and will move its headquarters to New York, reports the NY Times.
Johan de Nysschen, president of the Cadillac division, said the decision to move from Detroit to New York had already been talked about even before he took the job. De Nysschen previously helmed the Infiniti division at Nissan.
"We are very proud of our Detroit roots and heritage, and the majority of the Cadillac workforce will remain in Michigan," said de Nysschen in a statement. "But there is no city in the world where the inhabitants are more immersed in a premium lifestyle than in New York."
De Nysschen furthermore says that the move away from Detroit "allows our team to share experiences with premium-brand consumers and develop attitudes in common with our audience."
Dale Buss of Forbes.com says in his article that the decision to move to New York "is exactly the kind of strategic shakeup GM was counting on when it established a new brand czar position for de Nysschen a few weeks ago, poaching him from Infiniti."
"Of course, merely changing addresses won't do much per se to fix what's ailing Cadillac," adds Buss. "In any event, breaking Cadillac at least a bit free from its Detroit roots is a vintage sort of de Nysschen move."
Around 100 Cadillac employees, mostly from management and marketing, will be moving to New York, according to the NY Daily News. The manufacturing division, along with other departments, will stay in Detroit.
Allen Adamson, managing director of branding firm Landor Associates, agreed that New York's proximity to the luxury market poses a huge advantage.
"You have to catch trends closer to potential buyers," Adamson said. "There are more hedge fund billionaires in NYC than there are in Detroit. The team will be closer to the luxury market and luxury users."
New York City Mayor Bill de Blasio had already tweeted, "Welcome to New York City, @Cadillac. There's no better home for an iconic American company than an iconic American city."