Shanghai General Motors will begin producing the Holden Statesman sedan in Shanghai in a few months, say industry sources.
Local assembly is a gamble for General Motors. Another luxury model from its Holden subsidiary in Australia flopped in China last year. The Statesman will face stiff competition.
But it may be GM's best option. The luxury segment is booming in China. Sales rose 36.6 percent in 2006 to 17,940 units, according to Automotive Resources Asia, a consulting firm here.
GM's other full-sized luxury entrant is the Cadillac SLS, a stretched version of the STS. It starts at 498,000 yuan, or about $64,004 at current exchange rates. The Statesman would give buyers a less expensive option.
To be competitive, it should be priced below $51,500, say analysts.
Even at that price, the going will be tough. The Holden name lacks cachet in China and is facing established brands such as Audi and BMW.
Read Article