GM has announced plans to include Cadillac in its Shanghai operations from 2004, according to China-based research company Access Asia.

The car giant expects to start manufacturing Cadillac’s CTS model in Shanghai with its Chinese partner, Shanghai Automotive Industry Corporation. This will probably involve a new $US241 million plant to expand current production capacity.

GM and Shanghai Automotive Industry Corporation each hold 50% in Shanghai GM and the new plant could begin operations as early as 2005, raising production capacity to 200,000 units per year.