8.31GM launches $293 mln LCV venture with FAW in China

GM launches $293 mln LCV venture with FAW in China

 

http://autonews.gasgoo.com/auto-news/1011959/GM-launches-293-mln-LCV-venture
-with-FAW-in-China.html

 

Shanghai, August 31 (Gasgoo.com) General Motors announced on Sunday the
establishment of a 50-50 light commercial vehicle joint venture with major
Chinese automaker FAW Group Corp. 

 

GM said in a statement that the two companies are making a combined
investment of 2 billion yuan ($293 million) for the new company, and will
significantly expand FAW's existing light commercial truck business, 

 

The venture, based in the northeast China city of Changchun in Jilin
province, will use two existing FAW plants in Changchun and the city of
Harbin, with combined annual capacity of roughly 90,000 vehicles, said GM
China President Kevin Wale. 

 

A third plant, currently under construction in Harbin, will add 100,000
units of capacity by the end of next year, he said. 

 

"This is an important complement to the rest of our portfolio," Mr. Wale
said. "We are well established in passenger vehicles and mini commercial
vehicles and we haven't had a presence in the truck segment. Adding a truck
portfolio rounds that out." 

 

The venture aims to sell between 80,000 and 90,000 vehicles this year and
100,000 next year, and vehicles made at the new venture may also be exported
under a GM brand in global market in the future, according to GM. 

 

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