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GM JV breaks ground for new $1.1B manufacturing plant in China

Shanghai GM (Shenyang) Norsom Motors, GM China’s joint venture with SAIC and Shanghai GM in Shenyang, broke ground for its new manufacturing facility. Located in Shenyang’s Auto City Industrial Park, the new facility represents an investment of RMB 7 billion (US$1.1 billion).

The plant will have an annual production capacity of 300,000 vehicles and 450,000 engines when it begins operation in 2014. Its products will be sold by Shanghai GM.

The new plant covers an area of nearly 2 square kilometers. It will include press, body, paint, general assembly and powertrain shops as well as support facilities. It will adopt many of the same manufacturing, environmental protection, quality and management systems as other GM plants around the globe. Like Shanghai GM, it will be lean, agile, flexible and modular.

The new plant is an important component of GM’s five-year plan for continued success in China. It will enable us to keep up with the rising demand for our products across China. At the same time, it will contribute to the growth of the economy in northern China and the region’s automotive base.

—Kevin Wale, President and Managing Director of the GM China Group

To support the project, an automotive parts and logistics zone is being planned by the Shenyang government in the Auto City Industrial Park.

Shanghai GM (Shenyang) Norsom Motors was established in 2004. Shanghai GM holds a 50%stake and oversees management. GM China and SAIC each hold 25% stakes. The joint venture manufactures the Buick GL8 family and the Chevrolet Cruze compact sedan. It is the largest passenger car manufacturer in northern China’s Liaoning province.



Does this mean that we will soon be driving made in China GM vehicles?


CCP edited previous comment that said:

Harvey, JVs like this all around China are returning huge profits to multinationals based in the west. GM and Volkswagon continue to lead the sales of cars in China - because the Chinese love Buick and ICEs and prestige of western quality.


That's $161 owed each US citizen being sent to China.


Parts, components, batteries and sub-assemblies will be manufactured in China and final assembly in USA for local US sales only.

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