General Motors will build two new Cadillac models in a new $US550 million plant in the Michigan state capital of Lansing, Associated Press reported, citing a local newspaper.

Months of speculation had surrounded where the luxury vehicles - the CTS, a $US35,000 sedan to replace the German Opel-built Catera, and the Vizon, a cross between a sedan and a sport utility vehicle - would be built, AP said.

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AP said that Ron Zarrella, president of GM North America, had told The Lansing State Journal that the cars would be built at the new Grand River Plant in downtown Lansing.

GM hasn't officially unveiled the CTS, first examples of which are due off-line in November, AP added.

The new sedan has, however, been 'scooped' by U.S. car magazines.

Citing GM officials, AP said that the Vizon's price has not been set and that the model, unveiled as a concept car at this year's Detroit motor show, will be renamed. Production is expected to begin in mid-2003, AP added.

AP also quoted Jeff Schuster, an analyst with Troy, Michigan-based J.D. Power and Associates, as saying that the new Grand River plant is also expected to take over production of the Seville from GM's Detroit-Hamtramck plant in 2003.

GM may also build a fourth vehicle at the plant, located next door to GM's small-car plant, GM officials told AP on Friday.

GM is Lansing's largest private employer with more than 11,000 workers, AP said.

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