Shanghai General Motors has broken ground for a Cadillac plant and a pan-Asia technical automotive centre in Shanghai.

The complex will cost CNY8bn ($1.3bn), the Xinhua news agency reported.

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The Cadillac plant will have body and paint shops, assembly line, “auxiliary facilities” and a brand experience centre. Planned annual production capacity is 160,000 vehicles.

Daniel Akerson, GM chairman and CEO, said China’s auto market is expected to reach 30m vehicles by 2020, 0.1% of which will be luxury cars.

It is expected that annual Cadillac sales in China will pass 100,000 units by 2015, he said.

Chinese authorities approved the new plant early in May.

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