BMG Automotive Group Inc., the maker of the Chevrolet, Buick and Cadillac brands, said on Thursday that it will buy Cadillac.
The automaker, which also makes Ford and Dodge, said in a statement that it expects the deal to close in the second half of next year.
The new company will continue to operate GM’s Detroit-area operations and will continue its commitment to its key U.S. markets, the company said.
The acquisition will create a larger, more diversified and better-performing portfolio of automotive brands in the U.K. and U.U. markets than ever before, said Jeff Belsky, vice president and general manager of GM’s European operations.
Cadillac has a global market share of roughly 8% and represents the majority of GM vehicles sold in Europe, according to Belski.BMG said it plans to retain its leadership in advanced manufacturing, including in vehicle components and assembly, and its advanced engineering capabilities.
The acquisition will also strengthen GM’s capacity to provide its customers with new and innovative products and services, Belskin said.
Bilge Aysz, an analyst at Forrester Research, said the acquisition of Cadillac could be a boon for GM.
The automaker is looking to diversify its portfolio, including a focus on automotive parts and services.
Cadillac, which has been a leader in vehicle performance, has a significant advantage in the segment because of its production of advanced, high-performance vehicles, Ayszek said.
Cadillac also announced plans to build a new facility in Detroit that will create approximately 8,500 jobs and will invest $1 billion in the state. “
The transaction is expected to close early in the third quarter of 2017, and we look forward to expanding our partnership with GM in the coming years.”
Cadillac also announced plans to build a new facility in Detroit that will create approximately 8,500 jobs and will invest $1 billion in the state.
GM said it will also create at least 500 new positions.