Gasgoo.com (Shanghai June 27) - SAIC-GM-Wuling's new production site in Liuzhou, Guangxi will officially begin operation by the end of the year, Economic Observer News reported today. The eight billion yuan ($1.26b) site will boost the joint venture's overall annual production capacity by 400,000 vehicles. Upon completion, the core of SAIC-GM-Wuling's sedan production will move from the west of the city to the east.
According to information from the Liuzhou Development and Reform Committee's official website, all construction work on the site will be finished before the end of the year. The Wuling GP50 and GP30, as well as Chevrolet Spark, will all be manufactured at the site. It is expected to bring in 30 billion yuan ($4.75b) in sales returns for SAIC-GM-Wuling and contribute three billion yuan ($474.92m) in annual taxes. According to Liuzhou Municipal Party Committee Secretary Chen Gang, the site will be worth around 60 billion yuan ($9.49b) after completion.
The joint venture signed an agreement in Guangxi's capital of Nanning in late 2010 establishing the Liuzhou site. In the agreement, the JV also announced upcoming construction of a new engine factory in the province.
SAIC-GM-Wuling, now the country's largest producer of microvans, has seen great success with its own brand Baojun 630 sedan. According to statistics from the China Association of Automobile Manufacturers, the JV sold a total of 648,611 from January to May, achieving 48 percent of its total sales goal for the year. 595,934 of those sales were of Wuling branded vehicles, while 33,066 were of Baojun own brand models.
The JV aims to sell two million vehicles and earn 100 billion yuan ($15.83b) in revenue in 2015.
