Today, June 19th, GM broke ground to a new Cadillac plant in China, targeting luxury buyers in the region.
Although luxury auto sales are expected to grow at a slower pace this year, GM is optimistic about the long-term growth and plans to further increase the number of Cadillac dealerships. The US automaker is now focused on increasing Cadillac’s sales in China, a market dominated by Audi and BMW.
“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.”
GM executives predict that the luxury auto market in China will increase by 4% in 2013, half the percentage they predicted at the beginning of the year, while the overall auto market in the country is seen increasing at least 8%. The company did not mention what models will be manufactured at the new plant, in which GM invested $1.3 billion and which will have an annual production capacity of 160,000 vehicles.
“I don’t think we should put too much emphasis on the fact that in the last six months in China the luxury market has gone down,” said Bob Socia, president of GM China. “Clearly it’s not at the level of growth we expected at the first part of the year.”
Source: The Detroit News