GM to Build Cadillacs Outside North America by End of 2012

Say the name “Cadillac” and a car fanatic from Europe or Asia will immediately think of big American cars that are meant for comfort and not for going round bends. However, that might change soon, as General Motors could begin manufacturing vehicles that belong to its luxury-oriented subrand outside North America by the end of next year.

The news comes via Automotive News, who are quoting Dan Akerson, GM CEO, as saying that the move is part of an overall strategy to make Cadillac a truly global brand. Right now, vehicles are manufactured only in U.S. and Mexican facilities, despite the fact that the models are sold globally.

Akerson said the move to production elsewhere on the globe would help protect Cadillac from fluctuations of the dollar against and help the company improve its supply chain.

No indication (or even a hint) was given as to where the production facilities would be located, but the most likely candidate should be China, due to the cheaper labour force and the ever-growing market there.

"We're going to try to define a slightly different brand and product strategy by having a global premium brand, Cadillac, and a global value brand, Chevrolet," Akerson told reporters before GM's annual shareholders meeting.

The GM CEO also said he wants to make Cadillac a global luxury brand, just as Chevrolet is its current global brand. However, it will take some time before the Americans can match the success that Toyota has had with Lexus. A true global brand would also need to have a diverse portfolio, a strong presence and a big share of its segments in the countries it does business in.