GM's Wuling JV eyes output increase and new car brand
- Source: Shanghai Daily
- [14:26 January 20 2011]
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General Motors Corp's minivan venture in China plans to increase its production capacity and launch a new brand to help it strengthen its passenger car business.
The expansion of SAIC-GM-Wuling Motor Co will boost GM's business in China, which plays a key role in the United States auto maker's global recovery.
Under its first blueprint for the passenger car business, the SAIC-GM-Wuling venture yesterday said it will raise output of its Liuzhou plant by 33 percent to 800,000 units per year by the second half of 2012.
The venture will also expand its Qingdao plant soon to lift its capacity from 300,000 units now to 510,000 units.
Yang Jie, general manager of SAIC-GM-Wuling Sales Co, said passenger cars would grow to be one of its three core businesses this year, which also include minivans and overseas expansion.
A new passenger car brand will be unveiled soon to help the firm drive into a higher market segment.
The venture is a three way tie-up between GM, SAIC Motor Corp and Wuling Motors which is owned by the Guangxi Zhuang Autonomous Region government. It makes Wuling brand mini-trucks, minivans and the Chevrolet Spark mini car.
The venture sold 1.06 million units last year, an annual increase of 66 percent, which contributed more than half of GM's total sales of 1.83 million units in China. It is the first Chinese auto maker to achieve annual sales of 1 million units.
SAIC-GM-Wuling exports to Brazil with models sold under GM's Chevrolet brand. It will also make cars in India under a GM plan to expand in the market with SAIC.
GM is also talking with the Guangxi regional government to raise its stake in the venture to 44 percent, with SAIC controlling 50.1 percent and Wuling Motors owning 5.9 percent.
