When you mention “American luxury car” to almost anyone in the world, the typical response is “Cadillac,” and for good reason as it has always been a standard bearer for comfort, cushiness, and class.

But the 112-year old car division, which started in Detroit, is moving its base of operations for the first time outside of Motor City because of diminishing sales.

The Cadillac division of General Motors has had a rough time in the U.S. due to its competitors, notably cars made in Germany. The decision to move Cadillac headquarters is an attempt to bolster sales of its “A-List” car and reach out to the demographic that lives in the city where many of its potential customers live—namely New York City.

Go for the Gold

GM isn’t known for its quick management style, and as a result of this it tends to lag behind other car manufacturers when it comes to taking action towards customer needs. The recent announcement this week of its intention to move Cadillac headquarters to New York is a sign that things are changing for the car company.

The move to New York is to monitor the pulse of what consumers want (read: rich consumers) in their luxury vehicles. And according to Johann de Nysschen, Cadillac’s new captain at the helm:
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."

Translation: More sales from rich New Yorkers.

Some industry watchers seem to agree with Cadillac’s strategy. Allen Adamson, managing director of branding firm Landor Associates in New York says that the move makes sense:
You have to catch trends closer to potential buyers. There are more hedge fund billionaires in NYC than there are in Detroit. The team will be closer to the luxury market and luxury users."

Adamson said that owning a car is no longer about the mechanical allure and horsepower of cars, as much as it is what sort of creature comforts and tech is embedded in the car:
Cars today are less about the functionality of wheels and transmission and more about total experience: music, computer integration, the experience driving it...”

An Expert Arrives

Johann de Nysschen, the new head of Cadillac, is an expert in the luxury car field and previously led operations for Audi in the U.S. and Nissan’s Infinity operations in Hong Kong.

The news for Cadillac sales isn’t all bad, and in fact, are up 70 percent in China, and up 10 percent in worldwide sales. However, in the U.S., sales have gone down about 5 percent, while sales for luxury cars have more than doubled.

Audi, BMW, Mercedes-Benz, and Lexus posted sales increases of 15%, 12%, 9%, and 16%, respectively. Cadillac wants a bigger piece of the money pie and GM hopes that Nysschen can turn things around.

More Bling Means More Cha-Ching

Part of the problem with Cadillac’s dwindling market share in the United States probably has to do with its inability to present itself as a real luxury item when stacked up against its foreign counterparts.

Of course, GM’s overall reputation as the car maker with the most recalls probably has something to do with this too, but overall, while the Cadillac name is a well-known brand, it still falls short of being seen as equal as or better than its competition.

Why is this? One word: marketing. Somehow the message isn’t coming across and Cadillac needs to either change its entire marketing department or try ways where it can not only identify its prospective clientele, but convince them that Cadillac is worthy of its premium car status.

A quick visit to Cadillac's website proves that there is a disconnect with the message and the public as the stark webpages and utilitarian photos give the impression that they're selling an appliance rather than a luxury item that should be desired.

As they say, back to the drawing board.

Source: MSN News

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