US carmaker General Motors (GM) has started construction of new manufacturing plant for its luxury automobile and SUV division, Cadillac, in Shanghai, China.
Additionally, a new research and development (R&D) facility is being built by Pan-Asia Technical Automotive Center (PATAC), a joint venture between GM and China based SAIC Motor.
Representing an overall investment of about of $1.3bn, both the new plant and R&D facility will cover a total area of 750,000m2.
Shanghai GM president Ye Yongming said the new plant and PATAC's new facility will enhance ability to engineer and manufacture vehicles for customers across China.
"They will support the full implementation of our luxury car strategy while allowing us to address competitive challenges well into the future," Yongming said.
The new plant at Shanghai GM's Jinqiao operations will feature a body shop, paint shop, general assembly shop, auxiliary facilities, and high-speed and brand experience center, while it is expecetd to have a production capacity of 160,000 luxury vehicles per year.
The new plant would also support Cadillac's aim to triple its sales in China to 100,000 units per year by 2015, while increasing its share of the country's luxury car market to 10% by 2020.
Aimed at allowing engineers and designers to rapidly act in response to the varying demands of Chinese consumers, PATAC's new R&D facility will be equipped with an advanced design and styling center, in addition to facilities for new energy, vehicle engineeringand powertrain engineering.
The new R&D center will also house a dedicated team for vehicle development and engineering, while complementing PATAC's Jinqiao Design and Engineering Center and Wanggang Testing and Pilot Production Center.
