Cadillac Move To New York City Will Be Watched Closely, Barra Says5
General Motors and Cadillac chief Johan de Nysschen came under heavy criticism for their decision to move Cadillac’s headquarters from its home in Detroit to New York City. Some were upset as they felt the decision was made because certain Cadillac employees wanted to live in NYC instead of Detroit, while others were just mad jobs were being taken from the downtrodden city.
GM CEO Mary Barra recently stuck up for the decision when speaking with the Detroit News, saying Cadillac will be closely monitored in New York for its success as the high-ups at the company decide if the move was a good idea.
“We have a plan, we’re going to execute it,” Barra said. “Three years, five years, ten years, you’ll know by the success of Cadillac if it was a good decision or not.”
Barra also stuck up for de Nysschen, saying the long-time automotive exec knows the luxury business and understands the mindset of luxury customers. The move to New York will allow Cadillac to immerse itself in more luxurious surroundings and stay in better touch with the customer they are trying to appeal to.
Currently, Cadillac has a high dealer supply of sedans, a short-term problem Barra said the company needs to address. When asked if the automaker would cut shifts at its Lansing Grand River Assembly Plant to help better match supply with market demand, she wouldn’t comment, saying “these are people’s jobs and lives that we’re talking about,” and adding it’s too early to make a decision.
GM halted production at the Lansing Grand River plant in August for three weeks to help dwindle ATS and CTS sedan inventory. At the time, the automaker had a 152-day supply of the ATS on hand and a 215-day supply of the CTS.
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I believe this move has a lot to do with the state’s new tax incentive structure. Throw in the fact that they probably just want to make their headquarters in a distinctive place while saving some money, who could blame them? I have no problem with that. What I have a problem with is the typically ignorant marketing that is going on with Cadillac and all other GM products. Something seriously needs to be done. They need talented advertisers and a brave marketing department to make this work.
I totally agree that Cadllac advertising right now is BAD.
The current ad based on the song “My baby drove up in a brand new Cadillac” sounds almost exactly like the music for the ad for “We buy any car dot com” … cheap, Cheap, CHEAP. Absolutely as far from luxury as you can possibly get.
And I’m a musicologist.
Also, I just went to Capitol Cadillac’s 80th anniversary celebrations, saw many many classic Caddies from the 30’s-70’s, it was a fantastic event. I saw Porsche and BMW and Mercedes cars in the car park. But did I see an ATS Coupe, (even a display model), for which I am definitely in the market? Not one! Huge lost marketing chance.
It begins at days supply and goes back up from there, Ignoring or delaying decisions on high days supply contributed to our last big troubles. This current market condition may not be like October 2008 but it’s definitely worth paying serious attention to. As far as the Cadillac move goes, GM needs to stop trying to emulate other manufactures and be a leader not followers or imitators.
This is like sending your oldest to collage to live outside the home.
They will have to prove they can make the right decision and be responsible enough to do the right things but you will let them make their own choices. If they are successful you leave them be and if they are not productive and bring improvement you bring em home and stop funding the drunken party with the frat boys.
I believe this will work out.
I fully agree that the advertising is a mess. This has been one of my sticking points for along time. Just look the latest from Benz where they quickly point out their attributes in less than a min and Cadillac has a geek walking around town and dancing robots. What company would you take seriously?
As for the move it is not taxes especially NY and it is not to save money as in NYC… Are you serious save money in NYC the cost of living there would eat up more than any tax break. If you wanted to save money there are better places.
I truly believe the move was to put a barrier from GM influence and let Cadillac truly make their own decisions which they have not been able to do for a long time. Also I really do not see them marketing that they are in Detroit so much as they are in NYC to be closer to those who do markets and follow trends. NYC is the media capital of the world so If you want a advertising plan and you want to get the word out the fastest way possible you go to NYC. This is where all the power brokers for finance, advertising commerce and entertainment all meet. It is a lot easier to meet the right kind of people for your needs here for lunch vs. expecting them to fly to Detroit.
In NYC you burp and it becomes global news. In Detroit it is like a tree falling in the woods. If no one is there to hear it does it even make a sound. Relationships and partnerships will be made in NYC to better market and promote the car. So I would not expect advertising saying Cadillac of So Ho.
In this segment you go big or you go home.
I haven’t heard anyone mention that NYC is an international vogue hotspot and how that might affect Cadillac. I think that their new product has a very unique design language that is really coming into fruition for them. By making this move Cadillac shows that they have a different character in mind then what I’ve previously thought of them. Not only are they seperating themselves from old Cadillac, but they’re surrounded by the plethora of fashoin and trends found in NYC.