Next year, Cadillac will be its have its own business unit.
GM announced on Tuesday it will splitting off the luxury brand in what the company calls a "strategic realignment."
Cadillac's new headquarters will be in the SoHo area of New York City.
The new office will have about 100 employees and focus mostly on sales and marketing according to GM.
GM also said there will be no change for technical and development teams, nor for manufacturing or assembly operations.
This comes at a time when Cadillac is struggling with a loss in sales -- sales are down about 5 percent from last year.
The company is also developing a new flagship model.
According to Cadillac, it will be their answer to the Mercedes-Benz S-Class.