General Motors has said it would will spend $175m to modernise and retool a plant in Lansing, Michigan, to build the next generation of luxury Cadillac sedans.

Much of Cadillac's growth was expected to come from China, the luxury brand's largest market.

"We expect global luxury sales will continue grow, with Cadillac's global volume and profit expected to double by 2021, and our investments in the US will be a major driver," GM said in a statement cited by the Reuters news agency.

Both mainstream and luxury sedan brands have struggled in the US as consumers have increasingly abandoned them in favour of larger, roomier SUVs and pickup trucks.

In March, the former head of Cadillac, Johan de Nysschen, told Reuters the automaker's data indicated that, although sedans in China would shrink as a percentage of the overall vehicle market, by 2025 the luxury sedan segment would be as large as the entire Chinese luxury market was now.

According to the China Association of Automobile Manufacturers, vehicle sales in China reached 28.88m vehicles last year, up 3%, Reuters said.