Shanghai GM Breaks Ground for Cadillac Plant and PATAC Breaks Ground for R&D Facility
Will support GM's luxury car strategy and product development in China
Shanghai--June 19, 2013: Shanghai GM broke ground for a new plant that will manufacture Cadillac products and the Pan Asia Technical Automotive Center (PATAC) broke ground for a new R&D facility today in Shanghai.
“Shanghai GM’s new plant and PATAC’s new facility will enhance our ability to engineer and manufacture vehicles for our customers across China,” said Ye Yongming, President of Shanghai GM. “They will support the full implementation of our luxury car strategy while allowing us to address competitive challenges well into the future.”
GM Chairman and CEO Dan Akerson, who attended today’s groundbreaking ceremony, said: “General Motors made a long-term commitment to China when we established our Shanghai GM and PATAC joint ventures more than 15 years ago. Today, we are renewing that commitment while celebrating our outstanding partnerships with SAIC. We are also sending a strong message about the important role of Shanghai and China in GM’s global operations.”
The new plant and R&D facility represent total investment of RMB 8 billion (US$1.3 billion) and will occupy a total area of about 750,000 square meters. The new plant at Shanghai GM’s Jinqiao operations in Shanghai has a planned annual capacity of 160,000 luxury vehicles. It will include a body shop, paint shop, general assembly shop, auxiliary facilities, and high-speed and brand experience center. The state-of-the-art plant will adopt the world's most advanced automation systems as well as a range of new technologies and processes for lean and green operations. Cadillac has set goals of tripling its annual sales in China to 100,000 units by 2015 and increasing its share of China’s luxury car market to 10 percent by 2020.
Shanghai GM is refreshing its brands, product portfolios and technologies in order to strengthen its position in the market over the long term. Last year, it began production at the Shanghai GM Dong Yue Motors Phase III plant in Yantai, Shandong; began construction of the Shanghai GM Norsom Motors Phase III plant in Shenyang, Liaoning; broke ground for a new manufacturing base in Wuhan, Hubei; and opened the Guangde Proving Ground in Guangde, Anhui.
PATAC’s new R&D facility will allow engineers and designers to respond more quickly to the changing demands of Chinese consumers. It will include an advanced design and styling center, vehicle engineering facility, powertrain engineering facility and new energy facility. It will house a dedicated vehicle development and engineering team. The facility will complement PATAC’s Jinqiao Design and Engineering Center and Wanggang Testing and Pilot Production Center, both in Shanghai, and the Guangde Proving Ground.
Shanghai GM and PATAC, which are both 50-50 joint ventures between GM and SAIC, were established in 1997. Shanghai GM builds, imports and sells a comprehensive range of Buick, Cadillac and Chevrolet products. Last year, it had record domestic sales of 1,331,022 units. PATAC provides a range of automotive engineering services, including design, development, testing and validation of components and vehicles.