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.November 19, 2003
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This Week:

• GM to Export Thousands of Cadillacs, Other Vehicles to China

• Nissan Sets 2004 Titan Pricing - Full-Size Truck Starts at $22,400

• The BMW Ultimate Drive Reaches Its Millionth Mile

• Award for high-performance sports car

• DaimlerChrysler Signs Letters of Intent to Strengthen its Ability to Export Vehicles to China

• Supervisory Board of Volkswagen AG discusses new investment plans

• Ford Names Vice Presidents

• Toyota Motor Sales, U.S.A. Announces Management Changes

• Walter Wieland to Retire as Head of GM Operations in Brazil

• Delphi Secures $388 Million in New Halfshaft Business Strengthening Its Global Market Position

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GM to Export Thousands of Cadillacs, Other Vehicles to China

Export Vehicles Valued at Estimated $1.3 Billion, Planned for 2004-05

Photo: GM
 

The 4,500 complete vehicles that GM plans to export through its subsidiary, GM China, include the Cadillac CTS sedan, SRX luxury utility vehicle, XLR roadster and next-generation STS prestige sedan. With this agreement, the Chinese government has authorized the granting of trading and distribution rights one year earlier than required under its World Trade Organization obligations.

"As vehicle ownership grows in China, the luxury segment is beginning to open up," Wagoner noted. "We at GM believe that now is the right time for us to introduce our Cadillac luxury brand to China. Today's comprehensive agreement also indicates the seriousness of our intention to be a major player in China."

GM also signed two agreements with its flagship joint venture in China, Shanghai General Motors. The first agreement, valued at about $400 million, is for the supply of components and assemblies for about 13,000 vehicles. The Cadillac SRX and CTS are among the models to be assembled in China; other models or brands have not yet been announced.

The second of the two agreements with Shanghai GM involves the supply of about $700 million worth of component kits for the Buick Regal sedan and Pontiac Montana-based Buick GL8 executive wagon, which will continue to be assembled in Shanghai.

In addition, GM signed agreements with several independent Chinese importers to import about 1,000 complete GM vehicles into China. The makes and models of vehicles covered by this agreement have yet to be determined.

"The Cadillacs we'll export will come from our Lansing Grand River facility, one of our best plants in initial quality and implementation of our Global Manufacturing System," said Gary Cowger, president of GM North America. "It is an example of how globalization, when built on common manufacturing processes, can benefit operations worldwide."

Phil Murtaugh, chairman and CEO of the General Motors China Group, also praised the agreement.

"Adding Cadillac products to our broad China portfolio, while expanding the availability of our popular Buick Regal and Buick GL8 models, represents an extension of our strategy to respond quickly to the needs of our customers and to enter segments in which there is strong demand," Murtaugh said. "With the world's fastest-growing vehicle market and the rising popularity of luxury vehicles, China has the potential to become a key market for Cadillac."

Shanghai GM President Chen Hong said, "This is a further demonstration of the confidence GM places in the world-class manufacturing processes and quality in place at our joint venture. With Cadillac's unique styling, breakthrough technology and unrivaled luxury, we believe the nameplate will follow the lead of Buick and prove extremely popular in China, just like it has in North America."

GM plans to establish a new, exclusive network in key Chinese cities to sell and service Cadillac products. Sales are expected to begin in 2004.

(November 12, 2003)