Back in January, General Motors launched a new plant in Shanghai, China to exclusively produce Cadillac vehicles. The facility is significant for various reasons, both from a historical standpoint as well as for GM’s business: not only is the high-tech facility the first to be able to completely manufacture Cadillac vehicles outside of North America, but it also equips Cadillac with a notable advantage in the Chinese market by avoiding hefty taxes associated with importing vehicles into the country, which increases their retail price and makes them less accessible to potential buyers.
All in all, GM invested some eight billion yuan ($1.2 billion USD) in the Cadillac China plant, and the first vehicle to roll off the line in late January was the all-new 2016 Cadillac CT6 full-size luxury sedan. It was followed by the 2017 XT5 crossover in the March-April timeframe.
But there was one item that was a bit hazy: the facility’s capacity. According to Cadillac itself, the new Cadillac plant in China has an annual capacity of 160,000 vehicles. By contrast, GM sold roughly 80,000 Cadillacs in China in 2015, giving it a 4.2 percent market share of the luxury car segment.