GM to in­vest $12 bn in China for 4 years

Daily Trust - - NEWS -

U.S. car gi­ant Gen­eral Mo­tors Corp plans to in­vest $12 bil­lion in China from 2014 to 2017 and build more plants next year as it steps up its pres­ence to com­pete with ag­gres­sive ri­vals in the world’s largest auto mar­ket.

GM ex­pects its China sales to ex­pand 8-10 per­cent this year, in line with the over­all growth of the Chi­nese mar­ket, where for­eign firms, such as Volk­swa­gen AG and do­mes­tic play­ers like SAIC Mo­tor Corp vie for more mar­ket share.

“We are in­vest­ing wisely and ac­cel­er­at­ing our ve­hi­cle de­vel­op­ment and man­u­fac­tur­ing to keep pace with mar­ket de­mand. In to­tal we are in­vest­ing $12 bil­lion be­tween 2014 and 2017,” Matt Tsien, pres­i­dent of GM China, said at the Auto China show in Bei­jing.

GM plans to build five more plants in China next year, as part of its ef­forts to ramp up man­u­fac­tur­ing ca­pac­ity there by 65 per­cent by 2020, ex­ec­u­tives said on Sun­day.

The five plants will be in Wuhan, Chongqing, Jin­qiao and Shenyang. Four of those will be ve­hi­cle as­sem­bly plants, while the fifth one will be an en­gine plant in Shenyang.

The Jin­qiao plant will make its flag­ship Cadil­lac sedans. GM aims to sell 100,000 by 2015 in China, ris­ing from roughly 50,000 last year, ex­ec­u­tives said.

“Cadil­lac’s growth is on the launch of new prod­ucts. We launched the XTS, which al­lowed us to get to the 50,000 lev­els. This year, we will launch an­other sig­nif­i­cant prod­uct and next year, we will launch an­other,” Tsien said.

Daniel Waza, a con­ve­nience store or “spaza shop” owner, sits in­side his shop in Nka­neng town­ship, Marikana”s in­for­mal set­tle­ment near Rusten­burg, April 2, 2014.

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