The New York Times reported on Monday that the automaker is looking to enter the luxury-car business in a bid to boost profits in a tough time for luxury-cars makers.
Cadillac was acquired by a Chinese company in 2017, and is working to diversify its business into other areas, including luxury-truck-making and luxury-bikes, and make them more appealing to buyers.
It recently invested $2.5 billion in a new factory in India, which will produce luxury sedans.
Cadillac, however, has been reluctant to commit to the new factory, saying it wants more information about the facility.
CARSON IS WATCHING A LOT MORE OF ITS VIRGINIA FARMERS As a result, the new Cadillac factory in South Carolina, one of the states worst hit by the recession, is a natural choice for Cadillac to test the brand’s new products, said Jonathan Dolan, an analyst at Forrester Research.
Cadillac has a manufacturing plant in the state that employs around 1,500 people, and its sales in South Florida grew by 7.2 percent last year to $7.7 billion, according to data compiled by Bloomberg.
Cadillas sales in Florida were up 7.5 percent last quarter to $4.9 billion, and sales in the U.S. were up 5.2% to $5.6 billion.
The new factory is scheduled to be open in 2018, with a second factory expected to be built in 2021.
Cadillac is already manufacturing luxury vehicles in China, with plans to build a plant in Shanghai in 2019, but it has yet to announce a plan to make cars in the United States.
The company is also considering an expansion of its auto parts business, according.
CARSON HAS MADE ITSELF A LOVELABLE FORCE The new factory will allow Cadillac to better market its vehicles to customers, said Michael Pappas, a analyst at Sanford C. Bernstein.
Cadillac needs to show it is the best in the business, and if they can do that by building a brand-new factory, they’ll be seen as a force in the luxury market, he said.