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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:

2016 Cadillac ELR gets more power, $9,000 price drop

Cadillac has announced a series of updates to the ELR for 2016 that promises to make the plug-in hybrid luxury coupe a more desirable proposition. Perhaps chief among them is a price drop of $9,005 compared to the slow-selling 2014 model. The news follows an announcement yesterday that the Chevy Spark would get a $1,500 price drop. Cadillac is quoting a net price for the updated ELR at $58,495, which is obviously substantially less than the $75k it was asking for the previous version. But it's important to note that the new price is listed after US federal tax credits. The 2014 model came in at $67,500 after the full $7,500 tax credit, so math tells us that Cadillac has slashed the price on the 2016 ELR rather dramatically by about nine grand with a new MSRP of $65,995. One big upgrade on the performance front is a 25-percent boost in output from the hybrid powertrain that marries a pair of electric motors to a 1.4-liter inline-four gasoline-burning generator. The increase is said to be enough to drop 1.5 seconds off the 0-60 time, now quoted at 6.4 seconds. It'll travel for up to 39 miles on electric mode alone, but with the generator spooled up will go up to 330 miles before needing to stop. The engine management software has also been updated and the regenerative braking system reconfigured as well, but GM's luxury division didn't stop at the powertrain, fitting the 2016 ELR with a raft of other enhancements. Visually there's a new grille with the marque's latest emblem embedded. The suspension has been stiffened, the steering recalibrated and the brakes optimized for better feel. Cadillac is also throwing in the previously optional Driver Assistance package of active safety systems as standard, with adaptive cruise control available as an option. And the infotainment system comes with OnStar, 4G LTE connectivity and on-board Wi-Fi. There's even a Performance Package available with 20-inch performance tires offering 10-percent better lateral grip, four-piston Brembo brake calipers up front to help reducing stopping distances by 12 percent, recalibrated dampers and steering and a thicker-rimmed steering wheel. Because of the higher rolling resistance tires, however, the Performance Package kills four miles off of the electric driving range.

Cadillac expects major growth in China

The US sales issues facing Cadillac are not being paralleled in the People's Republic of China, as a new report from Automotive News indicates the US luxury maker should see its sales increase by as much as 40 percent.
The report cites Cadillac's own forecasts, which put its 2014 sales in the PRC at 70,000 units after cresting 45,000 vehicles at the end of August. Provided the sales pace holds true through 2015, the brand would hit its new 100,000-unit sales goal, AN reports.
"We're very optimistic about the luxury market, we believe that the luxury market by 2016 here will become the largest luxury market in the world, surpassing even the size of luxury in Europe," GM China President Matthew Tsien told AN. "With [Cadillac president] Johan [de Nysschen], we have somebody that really is an executive that understands luxury, but he also is very, very keen on understanding what do we need here in China for Cadillac to be successful."