SOUTHFIELD, Mich. — General Motors said it will begin production of the Cadillac ELR, a two-door, plug-in hybrid that uses Chevrolet Volt-like technology, late next year.
GM will invest $35 million in its Detroit-Hamtramck assembly plant to build the new model, Mark Reuss, president of GM North America, said in a speech in Detroit. The factory already builds the Volt. Cadillac is GM’s luxury brand.
GM’s second plug-in hybrid follows the introduction of the Volt in 2010. The Volt, which has a similar version sold under GM’s Opel and Holden brands overseas, can travel more than 30 miles on electric power before a gasoline engine engages. The automaker has marketed the Volt as a showcase of fuel-saving technology.
The ELR will be the production version of the Cadillac Converj prototype shown at the North American International Auto Show in Detroit in 2009.
The ELR joins the ATS and XTS in the expanding Cadillac lineup. GM wants to double the 2010 US sales of Cadillac within two years. The company sold 146,925 Cadillac cars and sport utility vehicles that year. GM last week named Robert Ferguson to the new position of vice president of global Cadillac.
GM planned to resume production of the Volt at its Detroit-Hamtramck assembly plant Monday after being idled for four weeks, Cristi Landy, Volt marketing director, said Oct. 10.
The return of production comes as Volt inventories fall to low levels, after high fuel prices and discounted leases spurred demand, she said.