7.6.2004
GM continues rapid expansion in China

GM today announced its plans to continue the aggressive growth of its business in China. Pending government approval, the total amount of new investment is expected to exceed US$3 billion over the next three years.

The funds will be allocated for a number of new projects including the introduction of new vehicles and powertrains, the creation of new facilities at GM’s local engineering and design center, the expansion of GM’s existing manufacturing joint ventures, and the launch of a new financing joint venture. The new investment will be funded by profits from GM’s China joint ventures.

It is planned to introduce nearly 20 completely new and upgraded products over the next three years. The products will cover nearly all key industry segments including some in which the GM family does not currently compete in China such as intermediate and luxury vehicles.

Committed to building world-class engineering and design facilities in China, GM and SAIC will upgrade their automotive engineering and design joint venture in Shanghai, the Pan Asia Technical Automotive Center (PATAC). Among the new facilities planned are the most advanced prototype laboratory in China, a virtual reality design studio that will be the first of its kind in China, a noise, vibration and harshness test lab, and a kinetics and compliance (K&C) lab . The new facilities will be built to the same exacting standards adopted by GM’s engineering and design operations elsewhere around the world.

In order to support its aggressive product plans, GM expects to more than double its vehicle assembly capacity in China to 1.3 million units by 2007. The new capacity will be realized through the expansion of its existing plants as well as the construction of new facilities. At present, GM’s joint ventures in China have a combined designed annual capacity of 530,000 units.

General Motors Acceptance Corporation (GMAC) and its partner SAIC have received approval from the China Banking Regulatory Commission (CBRC) for their application to establish a new financing joint venture. The partners are applying for an official business license from the CBRC. Their company - to be called GMAC-SAIC Auto Finance Company, Limited - would become China’s first foreign automotive financing joint venture.