GM's JV in Guangxi expands engine and vehicle capacity
China's largest minivan maker SAIC-GM-Wuling Automobile Co. has started expanding its engine plant and one of its two assembly plants in the southwest China city of Liuzhou.
The expansion of the two facilities, which began in late July, is due to be completed in late 2010.
Upon completion, annual capacity of the engine plant will increase to 525,000 units from 350,000 units now, while that of the assembly plant will rise to 300,000 units from 200,000 units, the company said in a statement released last week.
Total investment in the two capacity expansion projects will be around 2.1 billion yuan ($307.5 million), according to the statement.
Besides the one under expansion, Wuling has another assembly plant in Liuzhou with annual capacity of 400,000 units.
In the east China port city of Qingdao, the company also runs an assembly plant with an annual capacity of 300,000 units and an engine plant with an annual capacity of 350,000 units.
Established in 2002, SGMW is a 50.1-34-16.9 joint venture between Shanghai Automotive Industry Corp., General Motors and Liuzhou Wuling Automotive Co.
It sold 576,611 minivans in the first eight months of this year, up 54 percent year-on-year, according to Automotive Resources Asia, a J.D. Power unit.
Since mid-2008, the company has exported a small number of its minivans carrying the Chevy brand to other emerging markets such as Latin America and the Middle East.
