General Motors to Build $1.3 Billion Cadillac Factory in China
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The American giant announced it won regulatory approval to build a Cadillac plant in China that will have an annual production capacity of about 150,000 units. The construction of the new factory is set to commence in June 2013 and GM will invest about $1.3 billion (CNY8 billion) to get it completed.
The new plant is part of GM’s plans to push Cadillac closer to German rivals from BMW, Audi and Mercedes-Benz. In addition, the facility will allow the company to avoid paying the 25 percent import tariff established by the Chinese government.
However, Cadillac still has a long way to go before tackling BMW and Audi in China, as the luxury manufacturer sold only about 30,000 units last year. In comparison, Audi delivered 405,838 cars, while BMW sold 327,341 vehicles in 2012.
Story via Bloomberg
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