June 8, 2004
GM to invest U.S.$3 billion in China
Detroit, Michigan – General Motors announced plans to invest U.S.$3 billion in China over the next three years. The funds will be allocated for a number of new projects including the introduction of new vehicles and powertrains, the creation of new facilities at GM’s local engineering and design center, the expansion of GM’s existing manufacturing joint ventures, and the launch of a new financing joint venture. The new investment will be funded by profits from GM’s China joint ventures.
“GM currently has the broadest product lineup and the second-highest market share among global automakers in China,” said Phil Murtaugh, Chairman and CEO of the General Motors China Group.
“GM remains highly confident in the long-term prospect of the China market. With the world’s fastest-growing vehicle market, success in China is crucial to GM’s global success,” Murtaugh added.
Murtaugh said the new investment also would benefit the US economy by creating significant new business and employment opportunities for North American suppliers. “Between 1997, when we launched our major operations in China, and 2003 we imported more than US$1.8 billion worth of parts, components and equipment from North America. Our sourcing from North America will continue to grow along with the expansion of our business and the automotive industry in China.”
GM and its joint ventures in China plan to introduce nearly 20 completely new and upgraded products over the next three years. Most of the products will be locally manufactured. The products will cover nearly all key industry segments including some in which the GM family does not currently compete in China such as intermediate and luxury vehicles. Among the new products will be several Cadillac models, which will be manufactured at Shanghai General Motors Company Limited (Shanghai GM) and imported from North America.
GM’s joint ventures also plan to introduce a range of new engines and transmissions over the same timeframe. One of the facilities that will manufacture the new engines is Shanghai GM Dong Yue Automotive Powertrain Company Limited, a new joint venture between GM China, SAIC and Shanghai GM. The facility, which is located in Yantai, Shandong, is scheduled to begin production in the second half of 2005.
In addition, GM announced that production at the former Jinbei General Motors Automotive Company Limited (Jinbei GM) would resume later this year. In March 2004, GM China, SAIC and Shanghai GM signed an agreement for the restructuring of the joint venture in Shenyang, Liaoning.
The names and models of the new vehicles, engines and transmissions will be revealed closer to the start of production and sales.