The Michigan plant is already home to several Cadillac models, including the midsized CTS sedan and coupe. The facility was built in 1999 and is one of GM's newest U.S. assembly plants.
Since emerging from bankruptcy in July 2009, GM has invested more than $3.1 billion and created or retained more than 7,900 jobs at 21 U.S. plants, the Detroit-based automaker said in a statement.
The automaker said it will announce later the timing of the new Cadillac model, as well as when the new jobs and second shift will be added. The plant currently employs more than 1,100 workers, 965 of whom are hourly labor.
Thursday's announcement came two days after Michigan economic-development officials approved plans to grant GM, Ford Motor (F) and Chrysler Group $2.1 billion in tax breaks to invest in 17 new projects in the state.
Ford and Chrysler received the bulk of the incentives, but officials did grant GM a $25 million credit to hire 4,000 workers at its Renaissance Center headquarters in downtown Detroit. The Michigan Economic Growth Authority also expanded an earlier tax credit given to GM for a new hybrid electric vehicle battery center.