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GM Will Build New Plant in Chongqing, China

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GM Will Build New Plant in Chongqing, China

GM and its Chinese partners plan to build a new plant in China.

According to GM, SAIC and Wuling construction will start at the beginning of 2013, after the Chinese government approves the project. The joint venture will invest $1 billion in the plant, which will be built in the city of Chongqing, and it is part of GM’s plan to keep its position as no.1 automaker in the world’s largest auto market.

The plant will manufacture 400.000 vehicles and engines annually, but the companies did not offer any details about what models will be produced there. SAIC-GM-Wuling joint venture has set a production target of 2 million vehicles annually by the end of 2015.

GM plans to increase sales of low-cost passenger vehicles, to appeal to China’s middle-class price sensitive customers and the first time buyers. Recently the automaker has opened in China a new plant which will produce vehicles for its local discount brand Baojun.

The automaker and its partners have invested $1.3 billion to build this plant which will manufacture 400,000 cars annually. The JV also plans to build a powertrain factory at the plant, which will be opened in September 2013 and will produce 400,000 engines annually.

by Ana Cezara Savin (my Google+) - Wednesday, November 28th, 2012 - filed under General Motors, Industry, News. Image credit: .
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