Chinese School - GM inaugurates new engine plant in Guangxi

BIZCHINA / Overseas Investment

GM inaugurates new engine plant in Guangxi

(Agencies)
Updated: 2007-07-03 17:11

General Motors Corp inaugurated a new engine plant at its minicar factory
SAIC-GM-Wuling Automobile Co in southern China on Monday.

The 2 billion yuan ($263 million) new engine plant, adjacent to the
factory in Liuzhou, South China's Guangxi Zhuang Autonomous Region, will
have a capacity of 300,000 units a year and begin production of 1.1-liter
and 1.2-liter engines in August, GM said in a statement.

Related readings:
GM China venture plans exports to Ukraine
Shanghai Auto Q1 profit surges fourfold on ventures
GM may sell record 1m units
GM expects rise in China minivan JV's sales

The new engine plant will facilitate new product development at the
minicar factory, which now buys engines and related parts from outside
suppliers, the company said.

The engines will be used first in a new minivan model, the Wuling Hong
Tu, a vehicle developed by GM's Pan Asia Technical Automotive Center
joint venture in Shanghai with SAIC.

SAIC-GM-Wuling Automobile Co is a three-way commercial vehicle joint
venture between GM, Shanghai-based partner SAIC Motor Corp, and Guangxi
province-based Wuling Automobile Co GM owns 34 percent of the venture,
SAIC has 50.1 percent and the remainder is held by Wuling Automobile.

In the first quarter, SAIC-GM-Wuling Automobile's unit sales rose 27
percent from a year earlier to more than 160,000 vehicles, SAIC Motor
reported.

SAIC-GM-Wuling sold 460,155 vehicles in 2006, making it the biggest
minivehicle producer in China.

(For more biz stories, please visit Industry Updates)

Learn Chinese, Chinese Online Class