Patrick Rall's picture

Cadillacs to be built outside of North America in 2012

While speaking with a group of media before the first annual shareholders meeting since the company IPO, General Motors Dan Akerson stated that they plant to begin building Cadillacs outside of North America by the end of 2012.

The decision to produce Cadillac models outside of North America is part of GM’s effort to make Cadillac a global marquee brand and by building cars in other areas, GM can save some money on those vehicles sold in other parts of the world. Much like the decision to move production of the Mazda6 out of the United States due to currency fluctuations, GM hopes to cut costs on their luxury models sold in countries with booming auto industries like China – where American luxury models are likely to fetch top dollar.

Unfortunately, while CEO Akerson did inform the media that there would be Cadillacs built outside of North America by the end of 2012, he did not offer any indication as to where these foreign-built Caddys would be built. Currently all Cadillac models are built in the United States or Mexico with those models being shipped to other markets where the GM luxury brand is offered. When you combine the cost of shipping with the changes in currency rates, it makes good sense for the company to take a shot at building cars in or closer to those overseas markets.

"We're going to try to define a slightly different brand and product strategy by having a global premium brand, Cadillac, and a global value brand, Chevrolet,” said Akerson prior to the shareholders meeting. General Motors has comfortably been the top selling automaker in the US this year along with enjoying popularity in a variety of global markets. GM hopes to climb the ladder of the world’s top selling automakers by utilizing overseas production facilities to keep costs down which in turn increases profit.

Source: Automotive News

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