Cadillac’s management team will say goodbye to Detroit as the luxury automaker will move its global headquarters to New York City next year.

The move is part of an expansion plan that also includes Cadillac’s transformation into a separate business unit. The latter will enable it “to pursue growing opportunities in the luxury automotive market with more focus and clarity,” according to GM.

“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,” said GM President Dan Ammann, who added that the move will provide Cadillac more freedom to cultivate the brand.

Cadillac’s expansion includes a transfer of its headquarters from Detroit to New York City, where the company will have a multipurpose brand and event space as well as modern loft offices located in the heart of the city.

The company said the new global headquarters will handle the majority of functions with oversight and responsibility for both global and U.S. operations. However, “there will be no change to technical product development teams located in Michigan, nor does the plan impact manufacturing or assembly operations,” Cadillac stressed.

“There is no city in the world where the inhabitants are more immersed in a premium lifestyle than in New York. Establishing our new global headquarters in Soho places Cadillac at the epicenter of sophisticated living. It allows our team to share experiences with premium-brand consumers and develop attitudes in common with our audience,” Cadillac president Johan de Nysschen explained the decision.

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