GM eyes new China factory
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General Motors expects it will need to build a new greenfield manufacturing facility in the near future in China to accommodate strong growth in the world's largest auto market, but it will not be building a plant this year, its China president said on Saturday.
The United States auto maker sold a record 1.83 million vehicles in China in 2009, up 66.9 percent from 2008 and outpacing a 46 percent rise in the overall vehicle market, and it anticipates further growth this year. "We expect to sell more than 2 million units this year," Kevin Wale told Reuters on the sidelines of a ceremony to launch the Buick Excelle XT in Shanghai.
GM has been adding new shifts and expanding its existing assembly lines to meet robust market demand since last year, but a greenfield plant could also be an option, Wale said.
"We have enough capacity to build the cars we need to sell this year, and we need to continue to look for ways of increasing our capacity. That will mean we will have to add a new plant some time in the near future," he said.
Wale, also managing director of GM's China operations, nevertheless ruled out building a new plant this year. "It is physically impossible to do that so quickly," he said.
The auto maker makes cars, minivans and pickup trucks in China in partnership with SAIC Motor Corp. It also operates a light commercial vehicle venture with FAW Group.
SAIC aims to sell 3 million vehicles in 2009, its Chairman Hu Maoyuan said.
