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Cadillac moving to NY as separate business unit

Cadillac is under new leadership, and the automaker is committed to turning itself (back) into a global luxury powerhouse. It's got a strong product offensive (of products currently in showrooms, and much more on the way), and now it will have a new location to call home.
Following earlier speculation, GM has confirmed that it is moving Cadillac's base of operations from Detroit to New York. Lest you think it might rent offices in the Chrysler Building (which is, after all, one of the tallest in the city), the new Cadillac global headquarters will be located in the Soho area with a "multipurpose brand and event space in conjunction with modern loft offices." The company is still evaluating which staff will move along with it to Manhattan, and which will remain in Michigan where technical operations will still be based.
The move from Detroit to New York is the first major change being instituted by new Cadillac chief Johan de Nysschen, who previously undertook a similar shift in moving Infiniti away from Nissan headquarters to its own facility in Hong Kong. Ford had attempted a similar move in relocating its luxury portfolio under the Premier Automotive Group (which then included Lincoln, Mercury, Land Rover, Jaguar, Aston Martin and Volvo) from Dearborn to Irvine, CA, but ended up moving Lincoln (the last one still under the Ford umbrella) back to Michigan. Other luxury automakers like Audi (Volkswagen) and Maserati (Fiat) are headquartered away from their parent companies as well, but have a longer history of independent operation.

Cadillac exec realizes ELR pricing was stupid high

At least one Cadillac exec has finally started to come to terms with something we knew all along: the initial $75,000 price for the ELR plug-in hybrid was way too high. The bad decision in part led to the model selling just over 1,000 units last year. Company marketing boss Uwe Ellinghaus recently gave an interview to Bloomberg where he discussed what went wrong. "The MSRP was, indeed, a mouthful," Ellinghaus said to Bloomberg. "We overestimated that customers would realize our competitors were naked at that price." People balked at the ELR's price from the very start, and dealers were receiving $5,000 at one point just for getting customers to test drive the PHEV. Later, some incentives for buyers were as high as $14,000. Cadillac planners saw a conundrum when it came to the ELR's price. Too low of a figure was thought to bring the model close to the Chevrolet Volt, and $75,000 was also believed to signal Caddy's PHEV as something special. "We just wanted to make this a statement for the brand of how progressive we are," Ellinghaus said to Bloomberg. Cadillac is now working to rehabilitate the ELR's reputation with a host of updates for 2016. Buyers get a 25-percent boost in powertrain output, additional standard features, and the whole package comes with a $9,000 drop in price. The tweaks should help the luxurious PHEV make a better second impression. Related Video:

Safety group pans GM’s new Marketplace in-dash shopping

When it comes to our cars, is the Internet of Things a godsend? Or a hidden menace that will create more problems than it will solve? On the same day General Motors announced it will equip newer-model cars with its in-dash Marketplace e-commerce app, a prominent safety group was shooting it down. National Safety Council President Deborah Hersman tells Bloomberg the technology will only contribute to distracted driving and hurt efforts to stem the tide of rising auto fatalities, which grew 5.6 percent to more than 37,000 in the U.S. in 2016. The National Highway Traffic Safety Administration says distracted driving was responsible for 3,477 fatalities and 391,000 injuries in 2015, the most recent year for which it has data. "There's nothing about this that's safe," Hersman told Bloomberg. "If this is why they want WiFi in the car, we're going to see fatality numbers go up even higher than they are now." Marketplace, developed with IBM, will allow drivers — or more often, one hopes, their passengers — to order coffee or food, find gas stations and reserve hotel rooms from their dashboard screens. The technology is set to be uploaded automatically to nearly 1.9 million GM vehicles model-year 2017 and later that are equipped with WiFi hotspots and compatible systems. By the end of 2018, about 4 million Chevrolet, Buick, GMC and Cadillac vehicles will be equipped with Marketplace. The app will debut with a limited number of participating retailers, including TGI Fridays, Shell, Exxon Mobil and Starbucks, with more likely to join later. Online retail giant Amazon is also partnering with automakers such as Ford to bring e-commerce capabilities inside the car through its Alexa personal assistant. While convenience is nice, one other thing is becoming clear as the IoT wedges its way into our cars: It's taking aim at some decidedly first-world problems.Related Video: Image Credit: GM Buick Cadillac Chevrolet GM GMC Technology Infotainment in-car entertainment marketplace e-commerce