GM to build small Cadillac in Michigan

UPDATED -- General Motors Co. will spend $190 million in a Michigan plant to build a small sedan for Cadillac, the automaker said Thursday. GM CEO Dan Akerson made the announcement at the Lansing Grand River assembly plant.

The Lansing State Journal and The Detroit News reported the news Wednesday, citing GM officials and Lansing Mayor Virg Bernero, the Democratic candidate for Michigan governor.

GM did not identify the new Cadillac, but it is believed to be the ATS, which will be marketed below the CTS, currently the smallest Cadillac model.

The ATS is expected to go on sale as early as the 2012 model year. Analysts say Cadillac may sell coupe and wagon versions of the ATS as well.

GM already builds the Cadillac STS sedan and CTS sedan, coupe and wagon at the Lansing factory.

The Lansing City Council voted to offer GM about $9.8 million in tax breaks to persuade the company to build a new model at the plant, the State Journal reported.

GM said the addition of the new Cadillac will create about 600 jobs at the plant.

By David Phillips- Automotive News