GM Opens New Production Plant in China

General Motors has just announced the opening of a new plant in China which will be operated together with its local partner FAW Group as part of a 50-50 joint venture they formed in 2009. The new factory is specifically designed to build up to 200,000 vehicles per year but the initial capacity will be of just 80,000 light commercial vehicles, including pick-ups, SUVs, MPVs and light buses.

According to the Global Times, the plant located in Changchun, Jiling Province starts operations by building GM pick-ups, but will soon add SUVs and other products wearing the GM badge, as the company expects to see a significant boost in demand in the upcoming months.

GM and FAW formed the joint venture in August 2009 and the two companies emphasized that the partnership will be mostly focused on light-duty commercial vehicles supposed to be sold on the local market as FAWs.

“Our new joint venture combines the expertise of two industry leaders in a partnership that benefits both,” said Nick Reilly, GM Executive Vice President and President of GM International Operations.

“It will address demand in China and other markets for high-quality, affordable products in one of the industry’s most robust segments, while complementing the portfolio of products that GM and FAW currently offer. It sends an important signal of GM’s ongoing commitment to China through our strategy of working in China, with China and for China.”

The joint venture formed by the two companies has registered capital of RMB 1.2 billion and total investment of RMB 2 billion.