China OKs GM plan to build Cadillac assembly plant
General Motors said it has won regulatory approval to build a Cadillac factory to boost sales in China's fast-growing luxury market.
The National Development and Reform Commission has signed off on the plant, which will be located in Shanghai's Jinqiao zone, with construction beginning in June, Dayna Hart, a GM spokeswoman, said in an e-mail Tuesday.
Investments will total at least 8 billion yuan ($1.3 billion) and annual production capacity will be 150,000 units, she said.
The plant would allow GM to avoid paying China's 25 percent import tariff as it seeks to bolster Cadillac sales in the country. The move is part of GM CEO Dan Akerson's plans for the luxury brand to compete with BMW, Audi and Mercedes-Benz, which dominate China's luxury segment.
GM sold 30,010 Cadillacs in China last year, trailing Audi's 405,838, BMW's 327,341 and Mercedes-Benz at 196,211 units.
The Detroit-based automaker discontinued production of the Cadillac SLS in China after the model was replaced by the XTS, Hart said.
Investments will total at least 8 billion yuan ($1.3 billion) and annual production capacity will be 150,000 units, she said.
The plant would allow GM to avoid paying China's 25 percent import tariff as it seeks to bolster Cadillac sales in the country. The move is part of GM CEO Dan Akerson's plans for the luxury brand to compete with BMW, Audi and Mercedes-Benz, which dominate China's luxury segment.
GM sold 30,010 Cadillacs in China last year, trailing Audi's 405,838, BMW's 327,341 and Mercedes-Benz at 196,211 units.
The Detroit-based automaker discontinued production of the Cadillac SLS in China after the model was replaced by the XTS, Hart said.
