General Motors (GM) has confirmed today (17th December) that it has opened a new auto manufacturing plant in north-east China with SAIC Motor, its partner in the country.

The beleaguered US company posted a sales increase of 12.7 per cent in China during the first half of 2008 and it expects annual sales to be between ten and 15 per cent in the next five years.

As a result, it has decided to open the new plant - which will have an annual production of 150,000 units - in Shenyang, making it the city's second facility to be jointly-owned by GM and SAIC.

Kevin Wale, President and Managing Director of the GM China Group, said: "The opening of this plant is part of GM's ongoing pledge to grow our operations in China."

GM has also confirmed that production at the new plant will commence in the second quarter of next year and will mainly focus on the mass manufacture of Chevrolet Cruze compact cars.

The original Shenyang plant, which has a capacity of 50,000 units, has been producing Buick GL8 and Buick FirstLand executive wagons.

GM is one of the 'Big Three' US automakers to have expressed serious concerns about the threat of bankruptcy as they await the government's approval for a major industry bailout loan.

Source:

GM and SAIC open new China car manufacturing plant (17/12/08)
http://www.reuters.com/article/americasDealsNews/idUSTRE4BG0VB20081217