Cadillac Expands to Become Separate Business Unit - Engine Builder Magazine

Cadillac Expands to Become Separate Business Unit

As part of the continued expansion of Cadillac, General Motors has announced a strategic realignment that will establish the flagship brand as a separate business unit. In addition, the new Cadillac organization will expand to New York with a new global headquarters opening in 2015.

Cadillac OrganizationAs part of the continued expansion of Cadillac, General Motors has announced a strategic realignment that will establish the flagship brand as a separate business unit. In addition, the new Cadillac organization will expand to New York with a new global headquarters opening in 2015.

The realignment affirms Cadillac’s importance to GM’s strategy. Creating a new Cadillac business unit enables it to pursue growing opportunities in the luxury automotive market with more focus and clarity.

“With the relentless upward repositioning of successive new-generation Cadillac products, the next logical step is to provide Cadillac more freedom to cultivate the brand in pursuit of further global growth,” said GM President Dan Ammann. “Cadillac’s mission is to reinstate the brand to a pre-eminent position among global luxury brands, a bold challenge requiring a distinct and focused new organization. More than a division or brand, Cadillac is becoming a center of excellence for our company.”

Johan de Nysschen, who joined Cadillac as its new president in August, will be responsible for the brand’s overall operational performance.

The plan includes expansion to New York City in the form of a multipurpose brand and event space in conjunction with modern loft offices located in the heart of a city renowned for establishing trends and setting standards for the global luxury market.

While the majority of functions with oversight and responsibility for both global and U.S. operations will be located at the new global headquarters, there will be no change to technical product development teams located in Michigan, nor does the plan impact manufacturing or assembly operations. Cadillac management is reviewing options for which specific staffs will be based in New York and which will remain in current locations in the Detroit-area or elsewhere.

Cadillac has operations in more than 40 countries. The brand’s ongoing growth has been driven by an expanded product portfolio, leading to 28 percent global growth in 2013 and an increase of about 10 percent so far this year. Cadillac sales in China have grown 75 percent year to date.

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