GM China, SAIC and Shanghai GM Open Second Plant in Shenyang

SHENYANG, China – December 18, 2008: General Motors China and its joint venture partners, SAIC and Shanghai GM, celebrated the opening of their second plant at Shanghai GM (Shenyang) Norsom Motors Co. Ltd. in the northern Chinese city of Shenyang. During today’s ceremony, the first Chevrolet Cruze compact sedan rolled off the production line.

Construction of the 320,000-square-meter plant began in late 2005. The facility has a designed annual production capacity of 150,000 units operating on two shifts, along with the capability of producing vehicles based on different platforms. It is one of three global facilities that will initially produce the Cruze.

The Cruze is an all-new product from General Motors. Although developed for markets around the world, it was engineered in China to meet the unique needs and preferences of local car buyers. The Cruze features segment-leading design, quality, materials, fit and finish, and amenities. It is scheduled to go into regular production and enter the market in the second quarter of 2009.

“The opening of this plant is part of GM’s ongoing pledge to grow our operations in China,” said Kevin Wale, President and Managing Director of the GM China Group. “The Cruze will bolster our lineup of Chevrolet products. Chevrolet is GM’s fastest-growing brand here in China.”

According to Shanghai GM President Ding Lei, “Our Shenyang facility has successfully adopted the manufacturing, quality and management systems employed at Shanghai GM. In conjunction with our facilities in Shanghai and Yantai, it has helped make Shanghai GM a leader among passenger car manufacturers in China since our first vehicle came off the production line in Shanghai 10 years ago. Our second plant in Shenyang provides a solid foundation for the start of our next decade of growth.”

The new facility integrates industry-leading technology and management systems as well as green production. It has the most automated body shop in China, with 105 robots. Advanced Layer Build technology is used for body construction, optimizing safety. Being used in China for the first time are a turning slide board, which increases space utilization, and the KIT material feeding system, which enhances manufacturing flexibility and efficiency. Human-machine interaction was a priority in the plant’s design. More comfortable wood floors have been installed in certain areas of the assembly line. In addition, the new plant uses environmentally friendly water-based paint.