Manufacturing News

GM opens 2nd Cadillac plant in Shanghai

General Motors opened its second Cadillac assembly plant Thursday in Shanghai as part of an effort to expand its presence in China's luxury car market.

The automaker's joint venture with SAIC Motor Corp. will run the 8 billion yuan ($1.2 billion) factory, which will include a body shop, paint shop, final assembly line, test track and auxiliary operations.

The factory will build as many as 160,000 vehicles a year, according to GM.

The plant initially will produce the Cadillac CT6 sedan plus a plug-in hybrid version. The CT6 goes on sale in China next week, but GM has yet to disclose its price.

During a Wednesday news briefing, GM China President Matt Tsien confirmed that the company will export a small number of locally produced CT6 plug-in hybrids to the United States.

SAIC-GM Motors Corp., the joint venture, also produces the Cadillac XTS and ATS-L sedans at its initial plant in Shanghai. With the new plant opening, GM expects to build more than 95 percent of its Cadillac lineup locally in China by 2018.

China is now Cadillac's second largest market, next to the United States. Last year, Cadillac deliveries in China rose 17 percent to 79,779, vehicles, thanks to strong demand for the ATS and its long-wheelbase ATS-L.

Now that Cadillac has two assembly plants in China, Tsien predicted that the brand's sales growth this year will exceed its growth in 2015.

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