GM to build Cadillacs outside the U.S.

General Motors CEO Dan Akerson said Tuesday that the company plans to begin building Cadillacs outside the United States by the end of 2012 as part of its plan to make GM's premium brand a true global nameplate.

Akerson said overseas Cadillac production would reduce the risk of foreign-currency fluctuations and allow GM to better manage its supply chain. Although Cadillac long has been sold in China and other international markets, it's produced only in North America. Akerson didn't say where GM would make Cadillacs abroad.

It's part of GM's plan to accelerate overseas sales of Cadillac, which GM increasingly is positioning to take on European rivals such as Mercedes-Benz and BMW.

“We're going to try to define a slightly different brand and product strategy by having a global premium brand, Cadillac, and a global value brand, Chevrolet,” Akerson said, speaking to reporters before GM's first annual shareholders meeting since is IPO last fall.

Akerson said that strategy is similar to Toyota, with its namesake brand and its global luxury marque, Lexus. He said Chevrolet and Cadillac will continue to be buttressed by “regional brands” such as Opel in Europe and Buick, which is strong in North America and China.

Akerson, 62, became GM's CEO in September. Since then, he's shuffled GM's executive ranks and pressed lieutenants to shed GM's bureaucratic culture and move faster, such as pulling ahead the launch of the next-generation Chevrolet Malibu mid-size sedan from summer 2012 to early next year.

GM's stock price has slid since the excitement of its November IPO. Shares closed Monday at $28.56, down 16 percent since the IPO.

It's the first time GM held its annual stockholders meeting in the company's hometown since 1990.

By Mike Colias- Automotive News