GM received the hao de (O.K.) to build a Cadillac factory from China’s powerful National Development and Reform Commission (NDRC), says Bloomberg.
GM will invest at least 8 billion yuan ($1.3 billion) into a factory located in Shanghai’s Jinqiao zone. Annual production capacity will be 150,000 units, Dayna Hart told the business wire. By making cars in China, GM avoid paying China’s import tariff of 25 percent and more, especially on bigger bore imports.
According to Bloomberg, GM’s CEO Dan Akerson “plans for the luxury brand to compete with BMW and Audi.“ It will take more than a new factory to do that.
GM sold 30,010 Cadillacs in China last year. Audi sold 405,838 units, BMW 327,341. Very unhappy with its own numbers, Daimler sold 196,211 units in China.
Cadillacs are a tough sell in China, a fact that has been conceded by Hart’s marketing colleague Susan Docherty. Dispatched from China to Europe. Docherty said that to be successful in China, Cadillac must first be successful in Europe. Good luck with that. Cadillac sales in Europe are so low that they rarely register in official statistics.