Cadillac will reportedly begin to manufacture its SRX mid-size crossover in China from by 2015 for the local market, according to Car News China. The assembly of the mid-size crossover also made news previously with the announcement that North American production of the crossover will move north to Spring Hill, Tennessee from Ramos Arizpe, Mexico.
Due to China’s high import tax on vehicles, GM’s Chinese joint venture, Shanghai GM, will now manufacture the SRX locally in a new factory near Shanghai. Due to the tariff, the SRX currently starts at a surprisingly high 429,000 yuan ($70,185 USD) in China and can cost as much as 629,800 yuan ($102,844 USD).
The high starting price is made even worse by the 3.0-liter and 3.6-liter V6 engines offered in the vehicle, as China has a heavy tax on any car with an engine bigger than 2.9-liters. The Chinese variant of the crossover is expected to be powered by a 2.0-liter turbocharged four-cylinder engine, with the 3.6-liter V6, while the 3.6L V6 is not expected to be used.
When Chinese production begins, Car News China says the starting price of the SRX could drop to 350,000 yuan and extend to ($57,154 USD) 500,000 yuan ($81,648 USD).
Editor’s note: the vehicle referred to as the Cadillac SRX in this story is now known as the Cadillac XT5.