GM may build new plant in China to meet growth

(chinatrucks.com, Feb.22, 2010)General Motors expects to build a new plant in China in the near future to accommodate strong growth in the world's largest auto market, Reuters reported, citing the company's top executive in China.

GM and its local ventures sold a record 1.83 million vehicles in China last year, up 66.9% from 2008, and it anticipates sales of more than 2 million units this year. Last month, GM China sold 219,192 vehicles, up 97% from a year earlier,

GM has been adding new shifts and expanding its existing assembly lines to meet robust market demand since last year, but a greenfield plant could also be an option, said Kelvin Wale, president of General Motors China operations.

"We have enough capacity to build the cars we need to sell this year and we need to continue to look for ways of increasing our capacity. That will mean we will have to add a new plant some time in the near future," he said recently.

Wale, also managing director of GM's China operations, nevertheless ruled out building a new plant this year. "It is physically impossible to do that so quickly," he said.

GM makes sedans, minivans and pickups in its Chinese ventures with SAIC Motor, China's biggest automaker. It also operates a light commercial vehicle venture with FAW Group.

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