GM China JV Intros Sunshine

SHANGHAI, Nov 18,2002; Reuters reported that General Motors, said it has launched its third automaking joint venture in China by producing a new mini-van for one of the world's fastest-growing auto markets.

GM said in a statement its mini-truck and mini-van joint venture with China's SAIC-Wuling, announced in June, had begun rolling out the seven-seat Wuling Sunshine which will sell for 40,000 yuan to 50,000 yuan ($4,800 to $6,000).

The Sunshine is based on a Wuling chassis with technological enhancements from another GM joint venture with Shanghai Automotive Industry (Group) Corp (SAIC), GM China spokeswoman Daphne Zheng said.

GM said the Sunshine, with a choice of a 1.3- or 1.05-litre engine, was aimed at the upper end of the minivan market in second- and third-tier Chinese cities. It would go on sale immediately in some parts of China.

The mini-van could eventually be exported under the venture's plans to expand overseas sales, especially to Southeast Asia, Zheng said.

GM bought a 34 percent stake in Guangxi province-based SAIC-Wuling this year.

It also has a $1.5 billion plant in Shanghai with SAIC which makes Buick sedans and compacts, as well as a venture in northern China making higher-end SUVs and Buick trucks.

The new venture, SAIC-GM-Wuling Automotive Co Ltd, is China's eighth largest automaker and already makes a mini-van for a bargain $3,000.

Mini-vehicles are the largest and fastest growing segment of the Chinese auto market and represented 30 percent of all vehicle sales last year, GM has said