GM's Cadillac opens China factory to target luxury market

SHANGHAI – General Motors Co. has opened its first Cadillac factory in China to target the country's growing but crowded luxury car market.

GM said Thursday the 8 billion yuan ($1.2 billion) factory operated with its main Chinese partner, Shanghai Automotive Industries Corp., will have an annual production capacity of 160,000 vehicles.

Until now, Cadillacs sold in China have been imported from the United States.

Cadillac is a latecomer to a Chinese luxury car market that is dominated by BMW, Mercedes Benz and Volkswagen's Audi.

China is the biggest auto market by number of vehicles sold. Sales growth slowed last year to 7.3 percent but China still is the fastest-growing major market and global auto brands are looking to it to drive revenue.