General Motors has gotten approval to build a $1.3 billion manufacturing facility for its Cadillac brand in China. China's National Development and Reform Commission signed off on plans for GM to build the plant in the country's Shanghai's Jinqiao zone; construction is expected to begin in June of this year. According to a Bloomberg report, the plant will have an annual production capacity of 150,000 units.

No surprise here, but Cadillac would like to sell a lot more cars in the plush Chinese luxury market. The brand moved only 30,010 cars in China last year, compared with 400k for Audi, and about 330k for BMW. With Cadillac already telling us that it would be moving production of its XTS sedan to China – a production decision that saves having to pay 25-percent import tariffs – approval of the factory is a critical win for the company.

In fact, according to earlier comments by GM China president Bob Socia, it's at least conceivable that Chinese-built Cadillacs could be shipped back to the US for sale. The brave new world of globalization, getting stranger by the minute.


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    • 1 Second Ago
  • 52 Comments
      diffrunt
      • 1 Year Ago
      "Hecho en Chine"-----has a nice ring to it. "Chinese" -----a Walmart synonym for cheap & shoddy
      zchmcqn
      • 1 Year Ago
      LOL, GM gets bailed out by taxpayer's money and they return the favor by employing people. In China. Then here's Toyota continually building plants here. But hey...the "profits go back to Japan" so they must be evil. Hilarious.
      justgoawaymad
      • 1 Year Ago
      Oh now I see, the American people bailed them out to build china a plant. Nice...............NOT
        Jeremy Mock
        • 1 Year Ago
        @justgoawaymad
        and had to borrow the money from China to do it! Such a shame
      captainpaintball
      • 1 Year Ago
      Transration: "Hey, Mr. stupid, fat, greedy white American...we are THIS a crose to stearing enough technorogy from you to make our OWN Cadirrac. Why don't you spend a birron more bucks so we can take it from you for absorutely nothing, OK?
      no1bondfan
      • 1 Year Ago
      This is BS. We allow free access to our markets for Chinese goods while they charge 25% import tariffs on our vehicle production. They have far more to lose from a trade war than we do. Our government should force the issue on this - either China drops the import duties, or we reciprocate with 25% duties on all Chinese-made goods. There are a lot of countries filled to the brim with cheap labor that would happy to take over our low-wage production. Even better, perhaps some production could come back to the US.
        no1bondfan
        • 1 Year Ago
        @no1bondfan
        Come to think of it, what's even worse than their one-sided tariffs is their requirement that foreign manufacturers form partnerships with local companies and share their sensitive technology. It's just a ploy to force foreign brands to hand over their intellectual property. For anyone interested, I would suggest you read about how Alstom, Siemens, and Kawasaki (Fortune covered this in April) all were forced to share their IP in order to sell in China, and all were promptly ripped off, with near carbon copies of their products produced by local Chinese firms without permission. I fully expect Cadillac, Ford, etc. to receive similar treatment soon. We are being played for fools.
        no1bondfan
        • 1 Year Ago
        @no1bondfan
        Sorry for the double-post. The Autoblog comment system strikes again!
        no1bondfan
        • 1 Year Ago
        @no1bondfan
        What's even worse is their requirement that the companies form partnerships with local firms to gain access to the market. This is a blatant way to force the free handover of valuable intellectual property to Chinese firms. For anyone interested in seeing what this causes, read about how Alstom, Siemens and Kawasaki were forced to hand over IP to get a chance to compete for high speed rail business in China (Fortune had an article on this in April). They quickly saw carbon copies of their hard-earned IP produced without license by Chinese firms. I fully expect that Ford and GM will receive similar treatment soon. Right now, China doesn't have very good indigenous IP, so they show no respect for anyone else's. It is easier to steal than invent. The best leverage we have is the great value of access to our market. Until we start to play to win, and demand an end to Chinese hacking, IP theft, and one-sided tariffs, we will continue to be the loser in this trade relationship.
        Famsert
        • 1 Year Ago
        @no1bondfan
        Um, no. The US has 25% import tariffs on light trucks actually and have plenty of tariffs on plenty of goods especially designed against the Chinese. See the recent disputes on steel, tires, etc. And weren't plenty of people complaining that profits from buying US-made Toyotas still go back to Japan? So why is this such a problem? ;)
          no1bondfan
          • 1 Year Ago
          @Famsert
          Light trucks are an exception, I'll grant that. You'll notice then that this exception works - light trucks for American consumption are produced in America. The steel, tires, etc. that you mentioned were all reciprocal tariffs put in place after one-sided actions by China (dumping, mainly). You basically made my point - that we can put in place effective trade measures when we see Chinese policies that take advantage of us. In this case, US technology is going to be siphoned off, and we are going to lose the chance to create US jobs producing Cadillacs. We don't limit iPads or any of the other myriad products they send us. The result is a $315 billion trade deficit (in 2012). Do you really think we don't pay any price for that ongoing trade deficit? Every dollar that goes there doesn't pay for a US wage, or US taxes, or US infrastructure. They all go to benefit our greatest economic rival.
      Alfonso T. Alvarez
      • 1 Year Ago
      Wow, not only are a day late and a dollar short, you have not even captured all of the facts that are part of this announcement: Cadillac is growing it's sales more rapidly than ANY OTHER premium OEM in China percentage wise China adds a huge tax on imported vehicles - in the case of an ATS, it will be @ $22K less to sell one built in China in China than one built in the US - where they are all currently built! There are none, zero, zilch plans to build ANY GM VEHICLES in China and export them to the US The comment made by GM was that - it is conceivable that a vehicle built in China could be exported to the US - but this would have to be a very low volume vehicle that was designed and built for the Chinese market, but could possibly, possibly have some sales in the US (note that there are many GM vehicles built in the US that are exported to China for the exact same reason) GM is the biggest selling OEM in China - for them to not invest some of the profits they make in China to continue their leadership position in China would be just stupid! Every other OEM would love to be in GM's shoes in China!! As recently noted by other sources, GM brings BILLIONS of dollars of profits back to the US from China. Also, as recently noted by other sources, GM invests more money in the US than they invest in China for manufacturing facilities and engineering resources, or any other country for that matter. As those of us who study the global auto industry know, GM was early into China, is the leading foreign OEM there and it would be just ludicrous to cut down on their investments in the biggest global automotive market which they are leading and continue to make huge profits in, which are brought back to the US!
        ROCKandREVIEW.com
        • 1 Year Ago
        @Alfonso T. Alvarez
        gonna need some footnotes on those statements, others think using taxpayer money to export jobs is a losing idea, at the very least treasonous.
      styxmiko
      • 1 Year Ago
      for the anti GM/Cadillac dumbasses on this forum...Mercedes Benz, Audi (and perhaps even BMW...look it up if interested, I don't have the time or patience to educate dumbasses) have several factorie in china already...if Cadillac doesn't compete, than that's your problem morons. STFU
        justgoawaymad
        • 1 Year Ago
        @styxmiko
        So your ok that the US people are paying for this....ie the bail out?
          550PlusX5
          • 1 Year Ago
          @justgoawaymad
          No... But then again, I was against this entire bailout to begin with... GM should have been chopped up and sold to the highest bidders, just like A123 Systems... Chances are it would have been purchased in bits and pieces by companies from China, Korea, Europe, Japan...And perhaps in the process most of UAW's influence would have been eliminated... Better scenario? Oh wait.... Where else are they going to sell cars? Europe is in the toilet, arguably worse off than the U.S. As far as the U.S., what part of "Americans are broke" do you not get?
          Alfonso T. Alvarez
          • 1 Year Ago
          @justgoawaymad
          The 'US people' people are not 'paying for this'. GM sells the most vehicles in the Chinese market - they make lots of money doing so - then they reinvest some of that money to add production capacity - gee, sounds like a pretty intelligent business plan to me! Hint - they have also send BILLIONS in profits back to the US.
      RayMaq
      • 1 Year Ago
      The intelligence level in this comment section is irreproachable. Any one who thinks this is treason/unpatriotic, is the cause for GM's failure. A few jobs to the chinese for a large chunk of a massive emerging market is a drop in the bucket compared to the potential earnings it creates. Sales from china only strengthens GM overall. A healthy GM worldwide is a healthy GM america. Also China is not the only country with one way tarrif and require nationalization for companies to operate. India is the biggest offender, not to mention most of the developed middle east has the same requirements. For a third world nation, it's a fantastic way to boost the economy and develop infrastructure. In china and India's case, there's not much they want from america anyway asides from luxury goods (automobiles included). Everything else they can make themselves or take from surrounding nations for a fraction of the price.
      olskooltoo
      • 1 Year Ago
      your Tax money at work
      groingo
      • 1 Year Ago
      Reality check, take a look at the products sold in the US a majority by US companies but made in China for these companies and most are JUNK, not because of the Chinese but of the low or non existent standards placed on the actual manufacturer buy the US company, the Chinese can make anything to ANY standard you want but the US companies choose to have them make cheap crap for STUPID Americans...it's called the WALmart mentality, buy price not product!
        gregmlr
        • 1 Year Ago
        @groingo
        I agree. A Chinese-built GM couldn't be any worse than an American-built one.
      Hello, Brian
      • 1 Year Ago
      I have absolutely no issue with GM building cars in China for the Chinese market. Everyone else does in order to be cost competitive, and to provide local jobs. It also, increases the overall profitability of the company. I do, however, draw the line at importing Cadillacs from China. Building cars in China may be good for the bottom line, but it is terrible for the American worker. I have just about had it with the \"luxury\" industry and items being made by low wage workers. If I am paying a premium for your product, you can afford to pay premium wages. There is nothing luxurious about driving a car made by the cheapest labor possible. Just when I am starting to contemplate owning a Cadillac product, to start manufacturing them in China would be a sure-fire way to ensure that I never do.
        the.fog
        • 1 Year Ago
        @Hello, Brian
        I agree with your comment. My question is: do you apply that thinking to ALL of your consumer products? I'm willing to bet you wear "designer" clothes that are made for some of the cheapest wages on the planet. How about that iphone? Think it's made with 'premium' wages?
          Karl T
          • 1 Year Ago
          @the.fog
          I make an effort to buy US manufactured items ANY time I can. Is it always possible? No. So when I can't, I look for items made in a country with good human rights practices, labor laws, fair wages, reputation for quality, etc. China is NONE of those things. Yes, I may be forced to buy a (whatever) in China, but when it comes to something I'd have to entrust my life, I will NEVER purchase something made in China. I don't care what brand is on the car- I will NEVER buy/drive one. Don't think I'd even want to ride in one.
        RICKTIMS
        • 1 Year Ago
        @Hello, Brian
        I totally agree with you on this. But until they America becomes a low wage country like China we are doomed to consume that which is made else where.
        Tony McAdams
        • 1 Year Ago
        @Hello, Brian
        Amen!
        Scott Riedle
        • 1 Year Ago
        @Hello, Brian
        i agree. its fine if its to sell in china. but we have lost way to many jobs to oversees. that is why this country is in the hole its in. we dont have the jobs to dig us completely out. the rich get richer, the middle class gets poorer, and the poor go without. new american motto. if you beleive they wont ship them back here you are not in your right mind. i agree with most people were or buy things made out of this country. but ask yourself this, if you didnt, what would you have ? unfortunately MOST things are made outside this country. this country used to be great, when we had the jobs to support our people and economy.
      Luis A. Martinez
      • 1 Year Ago
      Next step is send parts to build it in USA and safe money and time,so bad Opel don't get any help at all and keep loosing customers,those Daewoo design are not going to last forever and I don't think and Audi owner is going to change for this brand (the little car is OK and the new CTC is a looker,but that doesn't help to stop seen them on trailer parks and such places!
        550PlusX5
        • 1 Year Ago
        @Luis A. Martinez
        ...You know America is in trouble when "Engrish learners" (the ones many people of you like to harp on) speak and write better English than some of you birthright Americans..... True story. I was working on a product at a tech company. Our tech writer dept sends a finished owner's manual for review to a Korean company (that was our partner)... The owner's manual comes back to us a few days later....complete with proofreading marks that corrected spelling and grammar errors throughout the owner's manual....Go figure...
        • 1 Year Ago
        @Luis A. Martinez
        [blocked]
        Jay-Zeus
        • 1 Year Ago
        @Luis A. Martinez
        ????
        justgoawaymad
        • 1 Year Ago
        @Luis A. Martinez
        did you just vomit in your mouth?
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