GM not only plans to expand in China but also build also export some of the vehicle built here to the US.
GM plans to build four new facilities in China by 2015 to reach a product capacity by 30% to 5 million vehicles annually. GM aims at grabbing more market share in the luxury and SUV segments and for this it will build four new assembly plants and four powertrain plants. The company will add 6,000 jobs in the region, according to Bob Socia, head of GM China. GM and its JV partners will invest $11 billion in China by 2016.
GM is also planning to boost exports from China to between 100,000 units and 130,000 units by the end of this year. When asked about the possibility of an eventual export of new vehicles made in China to the US, Socia said:
“It could very well happen. If it make sense to tool up a vehicle in one location as opposed to two, from an economic perspective, that’s what we should be doing. We’re open to be doing that. There’s no reason why we can’t be exporting to the States, and obviously the States are exporting here.”