GM Builds New Cadillac Plant in China
GM has broken ground on a new Cadillac plant in China this month. It has not yet been announced which models will be produced at the $1.3 billion plant. However, the plant is located in Shanghai’s Jinqiao zone and will have a capacity of 160,000 vehicles each year. The new plant also includes a research and development center.
According to CBSnews.com, The plan is to target luxury car buyers in the world’s biggest auto market. “Rising incomes per capita are going up. China’s a great market,” said GM CEO Dan Akerson. “We’re going to bring our high-end premium product here and we’re going to see how we run against the competitors from Europe and Japan.” Cadillac hopes to make a big impression on Chinese buyers, pulling sales away from automakers like BMW and Audi. Since GM forecasts China will account for up to two-fifths of the global luxury auto market by 2020, GM will be able to increase their priority, Cadillac sales. At the moment, Cadillac only manufactures the XTS sedan in China. The new plant will allow more models to produced making way for Cadillac’s goal to launch one new Cadillac model in China each year for the next five.