In response to a change in tariff rules in China on US built luxury goods, Cadillac has decided to build some of their newest products directly in China.
First off will be the new XTS sedan, a product that will fill the gap left by the China-only SLS sedan (itself a stretched wheelbase version of the STS sedan). Its spacious rear seat should play well in the Chinese market where luxury buyers are often chauffeured. This may even be an opportunity for the livery versions of the XTS to shine.
Production will be in partnership with SAIC, GM’s long-term Chinese partner.
Later, Cadillac expects to transition from exporting products from the Lansing, Michigan assembly plant (home of the ATS and CTS) to building them with SAIC. ATS production would be expected to start soon, but Chinese production of the CTS which is due a refresh in 2014 might have to wait.