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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.

GM Recalling Another 2.7 Million Vehicles In Five Separate Campaigns

The recalls keep rolling in from General Motors, evidently keen to avoid repeating the mistakes of the ignition-switch debacle and clean house. This time they're all coming at once, with five separate recalls announced together covering approximately 2.7 million vehicles. The largest of the five actions involves over 2.4 million units of the previous-generation Chevrolet Malibu and Malibu Maxx, Pontiac G6 and Saturn Aura in order to fix brake light wiring harness, which have been found to be susceptible to corrosion. The recall is separate from the 56k Aura sedans which GM recently recalled over faulty shift cables, not to mention the previous massive recall of 1.3 million vehicles – some of them the same models – but appears to have resulted from the National Highway Traffic Safety Administration investigation that started with the G6 almost a year ago. The second-largest campaign involves the 2014 Chevy Malibu, specifically those fitted with GM's 2.5-liter engine and stop/start system, approximately 140,000 examples of which has been found to have problematic brakes. The issue does not appear to be connected to the recall of 8k Malibu and Buick LaCrosse sedans (also involving brake woes) which we reported upon last week. Four crashes have been reported in such models, but GM admits it's not yet clear if the problem was a contributing factor in the accidents. A further 112k Corvette models from the 2005-2007 model years are being called in for problems with their low-beam headlamps resulting from a flexing relay control circuit wire that's not meant to bend. GM says it is "aware of several hundred complaints" about this issue, but notes that there have been no reports of related accidents. In addition, over 19k examples of Cadillac CTS from the 2013 and 2014 model years are being recalled over windshield wipers that might not work after a jump start. Finally, GM is also bringing in 477 examples of its 2014 Chevy Silverado, Tahoe and GMC Sierra (though not the Yukon) to fix a problem with a tie rod in its steering rack. As ever, all recall repairs will be performed free of charge, and GM is now estimating that recall-related actions this quarter will result in an estimated $200-million charge against its second-quarter earnings. Read the full announcement from GM below for further details.

Comparing Cadillac's crazy classy coupes

I just returned from the press launch of Cadillac's new ATS-V, a high-performance version of the US luxury marque's entry-level compact car. While ordinary ATVs offer a choice of a 202-horspower, 4-cylinder, a 272-hp turbocharged four or a 321-hp V-6, this one packs a twin-turbo V-6 that pumps out 464 thoroughbred horses and 445 pound-feet of hard-charging torque. Starting at $62,000 for the sedan and $64,000 for the sexy coupe, ATS-Vs are available with a 6-speed manual (with Active Rev Matching and no-lift shift capability) or an 8-speed automatic with steering-wheel shift paddles. They comes with GM's latest 4-mode Magnetic Ride Control, 5-mode Performance Traction Management (with launch control), competition-spec traction and stability controls, an electronic limited-slip differential, specially-tuned electric power steering, huge Brembo brakes, and added air cooling for their engine, transmission, and rear axle lubricants. They roll on 18-inch Michelin Pilot Super Sport tri-compound summer tires on 9-inch-wide front alloy wheels and 9.5-inch-wide rears. And they will rocket from rest to 60 miles per hour in less than four seconds while delivering 16 city EPA miles per gallon and 24 highway with the automatic and 17/23 with the manual transmission. The obvious purpose of all this technology is to effectively endow Cadillac's latest V-Series models with a rarely achieved true dual personality: go, stop, and corner like race cars on a track, then sooth, coddle, and entertain like luxury cars on the way to and from the track, or work. We had ample opportunity to verify both personalities with multiple hot laps of the Circuit of the Americas (COTA) Grand Prix course, followed by a more leisurely drive on public roads near Austin, TX. Even lacking wheel-to-wheel comparisons, we believe these hot new ATS-Vs are fully competitive with their pricier German competitors, and probably superior in some ways. So now, Cadillac will offer not one but two very sharp-looking, upscale, small-volume, 2016 compact coupes, almost the same size and at similar prices, but with totally different missions: this new high-performance ATS-V and the soon-to-be-upgraded ELR extended-range EV. The key question: why? Aside from its cramped back seat and ridiculous $76,000 starting price, I loved the ELR when it was introduced for 2014.