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Cadillac moving back to Detroit after four years in New York City

After four years in New York City, The Wall Street Journal reports that Cadillac is moving its headquarters back to Detroit. This comes about four months after former head Johan de Nysschen was ousted from the automaker for a variety of reasons, including slumping sales and a product line not in concert with consumer tastes. It's also months after a Cadillac spokesperson told The Detroit Free Press that "It's 100 percent that we're staying [in New York City], that was never a question." Let's be clear about this, the move to New York was not Cadillac's biggest issue. As contributing editor James Riswick reminded us this morning, "the decision to sell three similarly sized large sedans, a variety of obsessive BMW-fighting cars, and only one crossover was not done while they were in New York." That was all planned years ago, before de Nysschen ever joined the company. He may not have righted the ship, but he didn't set it on its course. Note that the XT4, Caddy's second crossover after the SRX-replacing XT5, is just now hitting the market. The move to Manhattan was meant to give Cadillac more autonomy and put its leadership in a place where they could get a sense of what a luxury car buyer wants and needs. Detroit is great, but it can be an echo chamber, especially in a company as large and storied as General Motors. The problem is that Cadillac still relies heavily on Detroit and that poor communication was slowing development, according to the report. Steve Carlisle, a long-time GM employee, took over the brand after de Nysschen was let go. He and more than 100 others work in New York. Related Video:

Why GM will import the Cadillac CT6 PHEV from China

There's a clear-cut reason that General Motors is going to build its upcoming plug-in hybrid CT6 sedan in China. Sure, the car will be sold in China and the US, but the real reason for the "Made In China" stamp is environmental. If an automaker wants to build a new model in China, adding a green powertrain is an easy way to do that. The CT6 will have both a PHEV option as well as standard gas engine versions. David Leone, Cadillac's executive chief engineer, told AutoblogGreen recently that, "[China is] far more receptive to approving localized production of vehicle programs that have new energy vehicle powertrain applications." To put it succinctly, since the CT6 has a PHEV option, it is easier for GM to build all CT6 models in China. Some of them will then be imported to the US. "Most new global Cadillacs will also be produced in China as well. It's our second-largest market in the world." "To bring any new car into China, to produce it, you need government approval," Leone said. "The government isn't interested in bringing many new cars to market that don't have new energy credits. [The CT6] also provides new energy credits that enables it to be an attractive, well-received product in China." Leone said that there are two main markets for the various CT6 models: China and the US. The car will arrive in the 2017 model year, so some time after the end of June 2016. There are other practical reasons to build the PHEV in China, like the cells in the battery pack. Those are provided by LG Chem, which makes some cells in Michigan but more in South Korea. And GM already builds cars in China through its joint venture with SAIC, Shanghai General Motors, or SGM. "In February 2013 we started making the XTS, in summer of 2014 we started making the ATS-L," Leone said. "We will be producing [the CT6] within a number of months. Most new global Cadillacs will also be produced in China as well. It's our second-largest market in the world." The Chinese and US versions of the CT6 will be identical, Leone said. While some Cadillacs sold in China are slightly different than the US versions – the Chinese ATS is 77 millimeters longer, for example – the CTS6 PHEV will be exactly the same in both places, other than slight tweaks to the trim levels. Still, "more of our cars going forward will be the exact same car," he said. That doesn't mean that sales will be the same everywhere.

GM cutting vehicle trim options to save money for electrification

Information continues to filter out about GM's plans based on comments the automaker made during its Capital Markets Day event in February. GM President Mark Reuss said the company's push to save money by rationalizing the number of build combinations will continue in 2020, carrying on the work done in 2019. As GM Authority covers, last year, the carmaker cut 3,500 components across model lines, a 12% drop in the number of parts it needed to stock in its plants. Reuss used the next-generation Chevolet Equinox and GMC Terrain as examples for more cost efficiencies, saying build possibilities — which include international markets and their options — will be cut by more than 50%, and use more shared parts. "We will reduce total trim levels on Equinox and Terrain from eight to six," Reuss said, "reduce engine variants from 11 to 5, reduce build combinations from more than 200 to less than 100 per program, and see significant cost savings of an already paid-for architecture that took the mass out, helping us self-fund electrification programs." GM will plow a large amount of the money it saves into its ambitious EV program. In 2017, the automaker said it intends to have 20 electric vehicles on the market by the end of 2023, some of which could be shared between brands. An automotive analyst at Seeking Alpha and a piece in Automobile attempted to put specifics to what we should expect. As Automobile points out, the first two EVs in the 20-car program are already on sale, being the Ariv Meld and Ariv Merge eBikes available in Belgium and The Netherlands. We've seen the Cruise Origin autonomous rideshare taxi, although we don't know when it will hit the road. The next three, which we should see in the metal shortly, are two Cadillac EVs and the GMC Hummer EV pickup. The Cadillac pair are expected to be sized like the XT4 and XT5, and along with the Hummer, should hit the market starting in late 2021.