General Motors to enter the Chinese luxury car market.
June 17, 2013
General Motors have announced that it has been given the go ahead by the Chinese government to build a $1.3 billion Cadillac plant.

The Chinese government had delayed the decision for several months until it was fully satisfied with General Motors plans. The decision is seen as a major boost for General Motors, who have been keen to expand its presence in the Chinese luxury car market, which is currently German dominated by Audi and BMW.

In 2012, Audi and BMW each sold more than 300,000 vehicles. This is compared to General Motors only selling a mere 30,000 Cadillac’s. The American automobile company have said that they aim to increase this to 100,000 vehicles within the first two years of production. The new $1.3 billion plant will have a capacity of 150,000 vehicles.

The Chinese government imposes a steep duty import of luxury vehicles which has forced western automobile companies to move production to China in order to capitalise on the growing Chinese demand for luxury vehicles, given that income levels have significant risen over the past decade. However the American and European governments are currently in the process of negotiating with their Chinese counterparts about reducing this import duty.

No Comments

Add a commment
*your email will not be displayed.