We’ll preface the story with this: we live in a global, interconnected economy. The saying used to be, “When the United States sneezes, the whole world catches a cold.” While that’s still quite true, China plays a larger part in today’s modern economy than ever before.
Recently, controversy has risen over Buick decision to import the 2016 Envision from China, which was followed by more distaste after Cadillac announced it will import the 2016 CT6 PHEV from China, too.
Speaking to AutoblogGreen, David Leone, Cadillac’s executive chief engineer, explained why the decision only makes sense from a global business standpoint.
“[China is] far more receptive to approving localized production of vehicle programs that have new energy vehicle powertrain applications.” In laymen’s terms, it’s easier for General Motors to build each variant of CT6 because of the green credentials that come with the production.
“To bring any new car into China, to produce it, you need government approval,” Leone said. “The government isn’t interested in bringing many new cars to market that don’t have new energy credits. [The CT6] also provides new energy credits that enables it to be an attractive, well-received product in China.”
China does everything in its power to court new business, and keep business there, through government incentives for “new energy vehicles.” Therefore, the 2016 Cadillac CT6 PHEV is simply poised to do much better than it will in the United States. Cadillac forecasts low demand of the CT6 PHEV stateside, and it made the judgement call to simply ship the few models from the People’s Republic.
It also makes more sense for the supply chain, too. The LG Chem battery cells found in the 2016 CT6 PHEV are made in Michigan, but in much higher quantities in South Korea, making it easier on the automaker.