SAIC-GM-Wuling raises capacity to 900,000 vehicles

Shanghai, November 3 (Gasgoo.com) China's major mini-vehicle maker SAIC-GM-Wuling Auto Co. Ltd. has completed construction of its West Plant's second-phase project, and the venture's Liuzhou and Qingdao facilities are expected to have a combined annual capacity of 900,000 vehicles, said xinhuanet.com today.

Meanwhile, SAIC-GM-Wuling will speed up its entry into the passenger vehicle market, with two new sedan models scheduled for launch next year. The company will introduce two platforms to its West Plant for producing sedans developed by General Motors. A GM sedan model has been delivered to the West Plant, which has been built on GM's global standards for manufacturing mid- to high-end passenger cars.

SAIC-GM-Wuling's general manager Shen Yang said last week that the joint venture will have an annual capacity of 900,000 vehicles to become one of the biggest automakers in China. As GM's Chinese partner for making mini vehicles, SAIC-GM-Wuling is China's current No. 1 manufacturer of mini-trucks and mini-vans. In the first nine months this year, the company's sales hit 490,000 units, gaining more than 45% mini-vehicle market share in China.

The Chevrolet Spark mini-car made by SAIC-GM-Wuling is expected to go on sale later this month, equipped with the 1.2L B-series engine that meets the Euro IV standard. The two production lines of the venture's West Plant will roll out two new passenger vehicle models in 2009, including a mid-class car. 

The three-partner venture currently has three facilities: West Plant and East Plant in Liuzhou of southwestern Chinese province of Guangxi, and Qingdao Plant in eastern province of Shandong. The second phase of West Plant was completed last week, and the three plants now have a capacity of 400,000 units, 200,000 units and 300,000 units respectively.

SAIC-GM-Wuling manufactures a range of Wuling brand mini-trucks and minivans as well as the Chevrolet Spark mini-car. In early August this year, GM announced that its SAIC-GM-Wuling joint venture had begun exporting the Chevrolet N200 minivan from China to Peru.

SAIC-GM-Wuling was established in 2002, with GM China holding a 34% stake in the venture, SAIC 50.1% and Wuling Motors 15.9%. In 2007, the venture sold 548,945 vehicles, topping the sales among China's mini-vehicle producers for the second straight year.