Why the 2014 Cadillac ATS Could Fail in China

The Cadillac ATS changed a lot of people's minds about General Motors  (NYSE: GM  ) when it first debuted last year. Finally, GM's luxury brand had a car that was a true no-excuses rival for the top German brands -- led by BMW  (NASDAQOTH: BAMXF  ) and its ever-popular 3-Series.

The Cadillac ATS sedan has been a success with both critics and buyers here in the U.S. GM is now preparing to offer the compact ATS in China -- as an import. Photo credit: General Motors Co.

So far, the ATS has done what GM intended -- raising Cadillac's street cred while drawing more and more first-time buyers to the brand. Now, GM wants to export that success to China, where Cadillac is gearing up for a big move in China's hot luxury-car market -- but there's a catch.

The catch is that GM is going to import the ATS from the United States. As Fool contributor John Rosevear explains in this video, that move may seem to make good business sense -- but it could put GM's baby Cadillac at a big disadvantage in the world's largest automotive marketplace.

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