GM to make Cadillac in Shanghai by yearend

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Last updated at: (Beijing Time) Friday, November 14, 2003

GM to make Cadillac in Shanghai by yearend

General Motors, the biggest auto producer in the world, signed a package of ground-breaking agreement yesterday in Detroit, US. Under the agreements, GM will export its cars to China through GM China and Shanghai GM next two years and its local facilities in China will manufacture its premium brands such as Cadillac and Buick. As learned this big export of GM is worth USD1.3billion, dwarfing any other export order placed with American auto giants this time.

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Two big orders

According to the introduction, the agreement is signed between GM's overseas marketing company as the seller and GM China and Shanghai GM as the buyer. The subject in the fist order is car sales. GM plans to export through its Chinese affiliate 4,500 cars, including Cadillac CTS and STS sedan, SRX Luxury MPV (multi-purpose vehicle), and XLR luxury sports car. This is the first agreement for car import approved to be signed by a Chinese subsidiary of a foreign carmaker. The meaning of this order goes further to stand for China to honor its commitment to WTO a year earlier of opening direct import trade and domestic distribution business in China to foreign enterprises.

The second big order between GM's overseas marketing company and Shanghai GM include two aspects. One is an export of 13,000 sets of Cadillac car parts worth of about USD400 million from GM to Shanghai GM for the purpose of local production. The other commitment of GM to Shanghai GM in this agreement involves car parts valuing at about USD700 million for the production of Buick Regal and Buick GL8 executive wagon.

GM's overseas marketing company also signed agreements with other independent Chinese car importers to export about 1000 autos within the catalog of GM color. Brands and models to be included are subject to further discussions.

New cars on streamline production by the end of the year

Although models of Cadillac to be on the production line of Shanghai GM are not specified in the agreement signed yesterday, Cadillac CTS and SRX will surely be there, sources said.

As learned Shanghai GM has begun to build its Cadillac production line in Pudong. It is estimated that the production line for Cadillac will be in operation by the yearend, provided delivery of imported parts from GM is on time.

Chairman and CEO of GM Richard Wagoner said yesterday that with the increasing number of auto owners in China the potential of the market segment for luxury cars in China has begun to make its power felt and that GM believed it is the right time to introduce Cadillac, the globally prestigious luxury car brand, into China. He also reckoned that the signing of the range of agreements that day indicated GM��s determination to secure its leading role in China's auto market.

Cadillac series to be exported to China will come from GM's plant in Lansing Grand River. At present, GM is planning a specialized marketing network for its Cadillac sales and services in its main targeted markets in China. The imported Cadillac series is supposed to supply the Chinese market in 2004.

Article from Wenhuibao and translated by PD Online staff member Lijia

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