Changchun, China – General Motors China has formed a new joint venture with China FAW Group, the FAW-GM Light Duty Commercial Vehicle Company Ltd.
The new 50/50 joint venture will focus on the production and sale of light-duty trucks and vans, and will engage in research and development, exports, and after-sales support. The venture will be based in Changchun, Jilin.
The new joint venture includes Ha’erbin Light Vehicle Company, and FAW’s share in Hongta Yunnan Automobile Manufacturing. Existing and future products will be branded FAW in China, while the joint venture leaves room for the creation of GM derivatives.
“Our new joint venture combines the expertise of two industry leaders in a partnership that benefits both,” said Nick Reilly, president of GM International Operations. “It will address demand in China and other markets for high-quality, affordable products in one of the industry’s most robust segments, while complementing the portfolio of products that GM and FAW currently offer. It sends an important signal of GM’s ongoing commitment to China through our strategy of working in China, with China and for China.”
GM China and FAW initiated official discussions on cooperation in the development and production of light commercial vehicles in January 2007, and signed a joint venture contract in December 2008. The venture received approval from China’s central government in July 2009.