Does Cadillac moving its HQ to NY NY signal something? (Detroit: luxury, to live in)

[Indentured Servant]

Originally Posted by animatedmartian

Just different businesses and people operate in different states.

The group of advertising companies in Detroit are likely very different in personality to those in NYC. Maybe they have more experience in marketing to high-end buyers and know how to help Cadillac out (since NYC is a very rich wealth capital). Sometimes a company just has to better connect with their target customers by going to where a lot of their target customers are.

I think that was kind of my point. a 500 mile radius of Detroit used to contain the vast majority of the US market....it may still....however....the growth and new market is elsewhere. In other words, the market trends creates a strong pull to move outside the state.

I hope you are right....though....otherwise I am going to have to change my predictions for the city and state.

[Indentured Servant]

Originally Posted by mjlo

Saturn's manufacturing was located in TN. The brainpower marketing and design were located in Detroit. Toward the end of the Saturn Brand even that had been integrated into the rest of the GM platform sharing concept. Almost nothing separated Saturn from the rest of GM except for color schemes in the radio lights ect.

This is not a gimmick to boost sales, Cadillac sales are strong and growing. This is a long term strategy to separate Cadillac from GM Brands. They are trying to get people to associate Cadillac less with GM and more independent. The average American consumer does not associate Lexus with Toyota, Acura with Honda ect. So they have platforms and drive trains that are Cadillac specific and are going more to that in the future.

Trust me, Michigan is fine. There's no change of GM leaving, and Yes the presence of the suppliers is growing, especially on the west side of the state, however the I-75 corridor is doing very well too.

I understand and do not disagree with most of what you said. But is there a separate Lexus headquarters, located away from Toyota's HQ, ditto with Acura and Honda? Why does GM think moving from Michigan helps separate the brand? Its like telling your wife that you want to sleep in a different bedroom, away from her....but the reason for the move is not related to HER. Should she start to worry about divorce or the relationship? If you are in a relationship, like GM and Michigan, and one of the entities increasingly wants to do things away from you and with "others"......such might be an indication that the relationship is weakening.

Don't be surprised if one day GM says....."We need to talk".....lol

[Retroit]

Maybe they are just taking the advice of all those who think that Detroit's demise was due to its reliance on the auto industry?

Let NY suffer now! LOL

[animatedmartian]

Originally Posted by Indentured Servant

I think that was kind of my point. a 500 mile radius of Detroit used to contain the vast majority of the US market....it may still....however....the growth and new market is elsewhere. In other words, the market trends creates a strong pull to move outside the state.

I hope you are right....though....otherwise I am going to have to change my predictions for the city and state.

Detroit is a vast market, but it's a unique market just as NYC or LA or Miami is. This has always been the case. To be honest, I think the car companies have just completely saturated the Detroit market and they're just about squeezed as much money as they can from local consumers. Either way, the car companies will always try to expand into new markets just as any business does to expand profits. But yea, I don't see it being profitable for them to just up the entire company out of state. It's not quite that nimble.

[Indentured Servant]

Originally Posted by animatedmartian

Detroit is a vast market, but it's a unique market just as NYC or LA or Miami is. This has always been the case. To be honest, I think the car companies have just completely saturated the Detroit market and they're just about squeezed as much money as they can from local consumers. Either way, the car companies will always try to expand into new markets just as any business does to expand profits. But yea, I don't see it being profitable for them to just up the entire company out of state. It's not quite that nimble.

Well.....I imagine it would be a gradual move....until it would be profitable. You just start moving things out a little bit at a time....then over time the cost of moving the HQ would not be that disruptive. The company might want to give something to get something. So it gives one region production, it gives another region engineering and gives another region HQ....that way each region has a vested interest in the companies future in congress.

[Retroit]

Originally Posted by Indentured Servant

Well.....I imagine it would be a gradual move....until it would be profitable. You just start moving things out a little bit at a time....then over time the cost of moving the HQ would not be that disruptive. The company might want to give something to get something. So it gives one region production, it gives another region engineering and gives another region HQ....that way each region has a vested interest in the companies future in congress.

Sounds like something from Adam Smith: move each sector to where it is most efficient.

[mjlo]

Originally Posted by Indentured Servant

I understand and do not disagree with most of what you said. But is there a separate Lexus headquarters, located away from Toyota's HQ, ditto with Acura and Honda? Why does GM think moving from Michigan helps separate the brand? Its like telling your wife that you want to sleep in a different bedroom, away from her....but the reason for the move is not related to HER. Should she start to worry about divorce or the relationship? If you are in a relationship, like GM and Michigan, and one of the entities increasingly wants to do things away from you and with "others"......such might be an indication that the relationship is weakening.

Don't be surprised if one day GM says....."We need to talk".....lol

No I clearly disagree Obviously branding and business is different than a marriage. I don't think it's a bad idea that if you want to differentiate Cadillac from the rest of your brands, to move it some place where the group think and tribal knowledge will not influence it as much.

[Indentured Servant]

Originally Posted by mjlo

No I clearly disagree Obviously branding and business is different than a marriage. I don't think it's a bad idea that if you want to differentiate Cadillac from the rest of your brands, to move it some place where the group think and tribal knowledge will not influence it as much.

I think you only want to move away from group think....when the outcome of the group thinking leaves much to be desired. Why move away from something that is WORKING FOR YOU? Is not moving away an indication that something is not working for you? That is all I am saying. I think it could be related to that nagging "GM Culture" that I oft here mentioned as a pejorative. That culture seems to be centered in Michigan.

[mjlo]

I can't tell if you want GM to leave, or if you are just suffering from a case of "the sky is falling". The sky is not falling, I promise.

[Indentured Servant]

Originally Posted by mjlo

I can't tell if you want GM to leave, or if you are just suffering from a case of "the sky is falling". The sky is not falling, I promise.

I do not want GM to leave.....but lets be honest....GM has been "leaving" little by little for decades. Just ask Flint. I am a advocate of Detroit and Michigan....why would I want them to leave? Why, when GM has divested so much from Michigan and invested so much elsewhere.....is this a "sky is falling" proposition? I am bullish on Michigan.....it has a lot of things going for itself.....but GM is a company that I see as "insecure"....and more and more it seems to be looking to run from itself....or the old GM....with is Detroit.