A new made-in-China Cadillac will be released in November when Shanghai GM resumes production of its Cadillac cars after halting manufacture earlier this year.

Shanghai GM Spokesman Chen Yanming said yesterday that Cadillac cars would be manufactured in China again earlier than expected because of brisk sales of the marque. It has been widely reported that Shanghai GM would not start making Cadillac cars in China until 2007.

"The new Cadillac sedans made in China are to roll into showrooms by November and will be featured at the Beijing Auto Expo this November," Chen said. "It is a new and real made-in-China Cadillac."

The new model, yet to be unveiled to the public, is expected to be Cadillac's flagship model to gain a niche in China's luxury car market.

Production of some models of prestigious European brands such as BMW and Mercedes-Benz has already begun in China, while exclusive and expensive marques like Ferrari and Bentley have set up nationwide sales networks.

Chen said Shanghai GM will start large-scale production of the more upmarket Cadillac model next year.

Experts familiar with the business of Shanghai-based Dazhen Consulting Company predicted the new Chinese-made model would be Cadillac's STS, the largest and most expensive car in the line-up.

The move is seen as a firm strategy by GM to expand its presence in China's high-end car market to make up for its shrinking market share in the United States.

Besides the new model, Shanghai GM is considering making more Cadillac cars in China next year, taking advantage of the country's booming new wealth and the increasingly competitive local auto parts suppliers.

Global leading auto parts companies including Delphi, Visteon and Bosh have all established factories and design centres in Shanghai.

Cadillac believes sales outside North America could reach about 20,000 vehicles a year by 2010, and much of the growth will come from China and Europe where Cadillac is studying plans to add new cars to the line-up.

"We are committed to making Cadillac in China and we have been prepared for three years for the new model," Chen said. "Our pace making Cadillac has never stopped in the past three years when we began to sell imported Cadillac cars in China."

Earlier this year, Shanghai GM announced it would halt production of Cadillac in China, where it began building Cadillac luxury cars in 2004. It was rumoured Shanghai GM would make a shift in its China market strategy and eventually withdraw production capabilities in China. Chen said the suspicion was groundless.

"We halted production of Cadillac in China mostly to adjust to new auto policies released earlier this year," said Chen. Under the new policy, Cadillac cars made in China would not meet the standard of domestically made cars that used exported auto parts including engines and mechanical systems.

Source: China Daily