Cadillac’s new XTS isn’t just headed to China, it will be built there. The forthcoming full-size luxury cruiser had already been earmarked for production in General Motors’ Oshawa, Ontario Assembly Plant, but the automaker has just announced in Beijing that it will also be built in China with its joint venture partner Shanghai General Motors.

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Cadillac is still a relatively small player in China’s premium segment, with just 68 dealers and 30,000 sales last year. However, it’s growing quickly, with March sales up more than 35 percent year-over-year to 2,745 units. Better still, General Motors says Cadillac’s average buying age is very young – just 35 – and it expects to have 120 dealers online by the end of this year to meet growing demand.

The idea of local XTS production strikes us as a smart one, as China is enjoying a swell in demand for luxury cars, and it has always maintained a strong demand for vehicles with large rear seats. Cadillac already has a solid track record building in the communist nation, as it first began assembling the China-only SLS Executive Sedan – essentially an extended wheelbase STS – back in 2006.
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