In China, some Cadillac models are currently more expensive than the equivalent offering from the competition as they have to be imported from the United States and are thus subject to higher taxes. That’s all about to change soon, with plans to have 95 percent of its lineup produced locally by 2018, Driving.ca reports.
If foreign automakers manufacture their vehicles in China, they are able to dodge China’s extremely high import tariffs. This is crucial to Cadillac’s plan to capitalize on rapidly expanding luxury vehicle demand in China, which also includes introducing nine new models in the region over the next five years.
Cadillac currently produces its XTS sedan and ATS-L in China, but is currently building a manufacturing facility in Shanghai tasked with building Cadillac models only. Future models from the automaker, such as its planned run of new crossovers and compact and small cars, will likely be built there.