GM to Build Third Manufacturing Base in China


The joint venture between GM China, SAIC and Wuling Motors will see the construction of a new manufacturing facility early next year, pending relevant government approvals.

SAIC-GM-Wuling (SGMW) announced that it will build a third manufacturing base in Chongqing Municipality to keep pace with the rising demand for its vehicles.

The facility is said to have an annual production capacity of 400,000 vehicles and engines -adopting GM’s global manufacturing processes and standards. SGMW will discuss which models will be built closer to the start of production.

SGMW currently operates manufacturing facilities in Liuzhou, Guangxi Zhuang Autonomous Region, and Qingdao, Shandong. The production base in Chongqing will reportedly give SGMW a strategic position in southern, northern and Midwestern China.Enabling SGMW to reach its production target of 2 million vehicles per year by the end of 2015.

‘SGMW has been China’s leading mini-commercial vehicle producer since 2006. In 2009, it became the first vehicle manufacturer in China to sell 1 million vehicles in a calendar year. SGMW had year-to-date sales of 1,311,489 units in the domestic market with a 47.5 percent of China’s commercial mini-commercial vehicle segment. It is on track to top last year’s record domestic sales of 1,285,820 vehicles’, GM.

Chongqing Municipality, formerly part of Sichuan province, is one of China’s largest cities and an industrial center in Midwestern China, GM reported. It has well-established infrastructure, a favorable investment environment and a developed automotive components industry.