BEIJING (AP) — General Motors Co. said Wednesday its main Chinese joint venture has received government approval to build a Cadillac factory as part of GM's efforts to expand its share of China's luxury auto market.
Plans call for the 8 billion yuan ($1.3 billion) factory in Shanghai to begin production in 2015 with an annual capacity of 150,000 vehicles, according to GM spokeswoman Dayna Hart.
GM sells imported Cadillacs in China but the luxury market is dominated by Germany's Mercedes Benz, BMW and Audi.
Automakers and industry analysts say luxury cars, along with SUVs, should be the fastest-growing parts of China's auto market.
Sales of luxury cars rose 12 percent last year to 675,000 vehicles, according to LMC Automotive, a research firm.
The president of GM's China arm, Bob Socia, said last month that one of the automaker's priorities in China is to expand Cadillac's small market share.
"We've got our sights set on the luxury market," said Socia at the Shanghai auto show. He said Cadillac will introduce a new model in China each year through 2016.
The Cadillac factory is being built by Shanghai GM, the American automaker's joint venture with state-owned Shanghai Automotive Industry Corp.
General Motors Co.: www.gm.com