GM board approves plug-in Cadillac hybrid: sources

By Bernie Woodall

DETROIT (Reuters) - The board of General Motors Co has approved a plan to produce a plug-in hybrid for the luxury Cadillac brand that will adapt technology developed for the upcoming Chevrolet Volt, according to people briefed on the decision.

The battery-powered Cadillac will be based on the Converj concept GM showed off in January and would become the second extended-range plug-in vehicle in GM's line-up after the Volt, which is set to launch at the end of 2010.

GM's 13-member board approved production of the new Cadillac at a regular meeting last week in Detroit, according to the sources briefed on the action. They asked not to be named since the decision has not been announced.

Production of the Cadillac is not expected before the 2013 model year, two years after the Volt's launch.

The Volt has attracted intense interest as one of the first rechargeable, battery-powered vehicles set to launch in the United States.

But GM officials have also downplayed expectations for the Volt's commercial success because of the vehicle's high development costs, high sticker price and limited production.

From the start, executives involved in the Volt development effort have said GM's goal would be to find ways to create spinoffs that would help the automaker recoup its investment.

The Volt is set to go on sale in late 2010 in the United States and later in Europe. GM hopes to sell 10,000 Volts the first year and 60,000 in the second year.