Cadillac moves its headquarters from New York to Michigan

Cadillac returns to Michigan.

Four years ago, GM announced that it would move the headquarters of its luxury brand to New York's trendy SoHo, and that the division would be a "separate business unit." This week, GM announced it would move the headquarters to Detroit's suburb near GM's technical center, where much of the company's vehicle design and engineering is being done. The move was first reported by the Wall Street Journal.

Cadillac will remain a separate business unit, said GM spokesman Patrick Morrissey. He said Cadillac has a more aggressive plan for the introduction of new vehicles and he would be more focused on bringing electric cars and autonomous vehicles to the luxury segment. So It made sense to bring Cadillac's marketing and management staff in New York closer to the Michigan design team.

About 110 Cadillac employees are working in New York and all will be offered jobs at the new Michigan headquarters, Morrissey said. GM expects roughly the same workforce in the new headquarters as now based in New York, although it is possible that some open positions are being eliminated.

When moving to New York GM announced it would allow Cadillac to "re-enter the brand in a prominent position among global luxury brands, a bold challenge requiring a new, distinct and focused organization." And he wanted to target this brand to the money and pomp of Manhattan, noting the "premium lifestyle" of New Yorkers.

GM (GM) said it will keep open the Cadillac House, a public space for events, concerts, and art exhibits that is part of the brand's headquarters in New York.

Johan de Nysschen had joined the company as president of Cadillac a month before announcing his move to New York after a career in foreign luxury brands such as Infiniti and Audi. But he left the company in April. He was replaced by Steve Carlisle, most recently at the head of GM Canada, and a GM lifetime employee who joined the company while still a student 36 years ago. He has had ads around the world during his career at GM.

Cadillac's sales and market share in the luxury goods market have declined since moving to New York. But Cadillac's worldwide sales have improved significantly, growing by 45% over the same period. About 60% of Cadillacs are now sold outside the United States, compared with less than 40% just three years ago.

CNNMoney (New York) First published on September 27, 2018: 11:09 ET