GM Opens New Production Plant in China

While the American auto industry is experiencing probably the toughest period in its history, with the largest three carmakers fighting for their lives, General Motors is heading to other markets that could help it remain in business. Since the European market is already saturated by powerful companies, GM intend to extend its operations in China, using a brand new production facility.

General Motors and its Chinese partner SAIC Motors announced that their second plant in Shanghai has officially opened its doors, with Chevrolet Cruze the first model to be rolled off the production line.

“The opening of this plant is part of GM’s ongoing pledge to grow our operations in China,” said Kevin Wale, President and Managing Director of the GM China Group. “The Cruze will bolster our lineup of Chevrolet products. Chevrolet is GM’s fastest-growing brand here in China.”

According to a General Motors statement released to the press, the new facility has an estimated annual production capacity of 150,000 units based on two shifts and is capable of producing various models on different platforms. The Chinese Chevrolet Cruze is set to arrive into mass production in the second quarter of 2009.

“Our Shenyang facility has successfully adopted the manufacturing, quality and management systems employed at Shanghai GM. In conjunction with our facilities in Shanghai and Yantai, it has helped make Shanghai GM a leader among passenger car manufacturers in China since our first vehicle came off the production line in Shanghai 10 years ago. Our second plant in Shenyang provides a solid foundation for the start of our next decade of growth,” Shanghai GM President Ding Lei said.

As mentioned, General Motors already owns a Chinese production facility in Shanghai, providing an annual capacity of 50,000 units, with Buick GL8 and Buick FirstLand executive wagons the only models produced for Shanghai GM.