General Motors has announced plans to turn Cadillac into a "separate business unit."

General Motors has announced plans to turn Cadillac into a "separate business unit."

According to the automaker, the move will allow Cadillac to "pursue growing opportunities" with "more focus and clarity."

Unfortunately, the change means Cadillac will establish a new headquarters in New York City. Details are limited but GM says the headquarters will open next year and comprise of a "multipurpose brand and event space in conjunction with modern loft offices."

The company went on to say a majority of the oversight functions will move to New York but there will be "no change to technical product development teams located in Michigan." The move will also not have an effect on manufacturing or assembly operations.

In a statement, Cadillac President Johan de Nysschen “We are very proud of our Detroit roots and heritage, and the majority of the Cadillac workforce will remain in Michigan. But 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."

Be part of something big

Cadillac to become a standalone business unit, will move to New York City