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Cadillac Plans to Move to NYC


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Cadillac has announced that starting January of next year, the 112 year old luxury car manufacturing division will be moving its corporate headquarters from Detroit to New York City. The move will be part of the company’s effort to relocate to its best sales market in order to better address the needs of their customers. The city that never sleeps will become the new home to the brand which has in recent years been losing sales to its more premium German competitors. The company has already been eyeing up a loft office in Manhattan’s SoHo neighborhood.

2014’s Car Sales in the U.S.cadillac

In the U.S. the Cadillac brand isn’t performing as well as one might think. The brand is part of the General Motors family which also includes Buick, Chevrolet and GMC. Despite the brand having positive industry reviews on many of its cars which include the CTS, ATS and the brand new XTS, sales for the brand have fallen by 5 percent. Globally the brand is doing quite well with an overall 10 percent jump in sales. However U.S. sales have become the focus of the premium market as foreign manufacturers are currently in the lead with sales for this year. So far this year premium car sales have doubled over that of the non-luxury sales. Audi’s sales are up 15 percent, BMW sales are up 12 percent and Mercedes-Benz sales are up roughly 9 percent. Even Toyota’s luxury brand Lexus is up 16 percent in U.S. luxury sales, the same market where Cadillac is missing out on these percent increases.

Why the Move?

For a brand that has been owned and operated out of the same city for the duration of its existence has many wondering why Cadillac is leaving the once great motor city for the bright lights and attraction of the big apple. Johann de Nysschen which is the company’s new brand president has stated, “There is no city in the world where the inhabitants are more immersed in a premium lifestyle than in New York….it allows our team to share experiences with premium-brand consumers and develop attitudes in common with our audience.”  In essence it would seem that the brand is taking the old adage of “follow the money” to almost a literal tense. Perhaps it is because NYC offers the current best sales market for the brand, that its upper management feels that a move to that area would be the best chance the Cadillac brand would have to compete with other premium brands.

Cadillac which is a brand that has been one of the staples of American luxury for decades is trying to regain its glory days by moving the company executives and brand marketers to an area that has seen much more wealth than Detroit over the same period of time. The company believes that the move will help them to better assimilate with the needs of their consumer base which as a reflection of dropping sales numbers the company has been suggesting that they have been failing in doing. Cadillac spokesmen have already been quoted to saying that it is only executives and marketing staffers that will be making the move in the coming first phase. The company is still committed to producing their vehicles in their existing plants which include Michigan, Texas, Mexico, China and Canada.

Relocating for Refurbishingcadillac 2

This isn’t the first time Johann de Nysschen is moving a brand’s headquarter office to a new location. In fact, he has not only done it in the past but to just about every brand he was worked for. In 2007 he was the head of the Audi U.S. division and oversaw the transition of that relocation from Detroit to Virginia. Again in 2012, he took over for Nissan’s Infiniti luxury brand which was moving their headquarters office from Japan to Hong Kong. While the brand struggled immediately after the move, de Nysschen helped the brand introduce new products which ultimately allowed the company to see a 30 percent increase in overall sales within the first half of the year. Cadillac’s move to New York wouldn’t be the first time an American based manufacturer left Detroit. In 2011, Ford’s luxury brand Lincoln left Detroit for Hudson Rouge, NY in hopes of refurbishing the brand to meet the needs of it base consumer market. In terms of domestic competition Lincoln and Tesla are the two biggest competitors with Cadillac. Lincoln especially since both Lincoln and Cadillac can trace their foundation to the same man, Henry M. Leland who founded Cadillac in 1902 and Lincoln in 1917.

Cadillac hopes that the move to NYC will help the brand to give it more of an edge over its foreign competition and become more appealing to an economic hub that tends to revere luxury and a better driving experience. It will be interesting to see how consumers react to the brand in the coming months and soon after the first phase of relocating are initiated.

 

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