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GM to build $1.3 billion Cadillac plant in China

General Motors has gotten approval to build a $1.3 billion manufacturing facility for its Cadillac brand in China. China's National Development and Reform Commission signed off on plans for GM to build the plant in the country's Shanghai's Jinqiao zone; construction is expected to begin in June of this year. According to a Bloomberg report, the plant will have an annual production capacity of 150,000 units.
No surprise here, but Cadillac would like to sell a lot more cars in the plush Chinese luxury market. The brand moved only 30,010 cars in China last year, compared with 400k for Audi, and about 330k for BMW. With Cadillac already telling us that it would be moving production of its XTS sedan to China - a production decision that saves having to pay 25-percent import tariffs - approval of the factory is a critical win for the company.
In fact, according to earlier comments by GM China president Bob Socia, it's at least conceivable that Chinese-built Cadillacs could be shipped back to the US for sale. The brave new world of globalization, getting stranger by the minute.

J.D. Power study sees new car dependability problems increase for first time since 1998

For the first time since 1998, J.D. Power and Associates says its data shows that the average number of problems per 100 cars has increased. The finding is the result of the firm's much-touted annual Vehicle Dependability Study, which charts incidents of problems in new vehicle purchases over three years from 41,000 respondents.
Looking at first-owner cars from the 2011 model year, the study found an average of 133 problems per 100 cars (PP100, for short), up 6 percent from 126 PP100 in last year's study, which covered 2010 model-year vehicles. Disturbingly, the bulk of the increase is being attributed to engine and transmission problems, with a 6 PP100 boost.
Interestingly, JDP notes that "the decline in quality is particularly acute for vehicles with four-cylinder engines, where problem levels increase by nearly 10 PP100." Its findings also noticed that large diesel engines also tended to be more problematic than most five- and six-cylinder engines.

Combative de Nysschen defends Cadillac move, naming change

Johan de Nysschen isn't afraid of taking quick, decisive actions, even if they are criticized. Since taking the wheel at Cadillac, he instigated moving the luxury division's base of operations to Manhattan's SoHo neighborhood and introduced a new naming scheme for the future of the brand, like he did at Infiniti. The polarizing boss recently explained his feelings about the future of Cadillac in more depth on his Facebook page, but unfortunately only his friends could read it. Thankfully, Daily Kanban posted much of the strongly worded missive for the whole world to see.
Much of the message examines the decision to move some employees to New York. De Nysschen claims that it's all about giving Cadillac distance from Detroit to reshape itself. It allows for, "No distractions. No side shows. No cross-brand corporate considerations. No homogenized lowest common denominator approach. Just pure, unadulterated, CLASS."