GM to Produce US Cars in China

Just as we told you a few days ago, General Motors plans to build some of the cars sold in the United States overseas, as part of a broader attempt to cut production costs. However, there was no word on the models to be produced outside neither on the countries to host GM's production process. Until today. According to a report by Autonews, one of the countries to build cars for the US market is China.

It seems like China will become responsible for some of GM's models sold in the US in 2011, with the American car giant expecting to sell around 17,335 of the China-made vehicles in the United States that year. Furthermore, GM plans to triple the annual figures to 51,546 in 2014.

Still, there's no word on the models to be sourced from non-US production facilities. However, Autonews says that most of these cars would be small models such as Chevrolet Spark which is going to be produced in South Korea.

But, once again, such an enthusiastic plan, might after all upset US authorities who repeatedly demanded the car company to maintain domestic operations without affecting workforce. Well, if such a scenario will happen, and according to today's report it is actually very likely to happen, General Motors would probably lower US inventories and obviously reduce workforce at certain plants in the country.

This is, after all, a cost-cutting measure and General Motors will save money from both job cuts and lowered US production. Additionally, GM is seeking cheaper labor costs, with China likely to allow the company to build the same cars as in the US but at very low prices.