Chevrolet Spark to adopt China-made engine

SAIC-GM-Wuling Automobile Corporation (SGMW) has started to equip its Chevrolet Spark with homebred engines in a bid to further cut cost and boost sales in the domestic market, sources reported.

The new 1.2-liter engines, developed both by SGMW and Korea-based Daewoo Motors Sales Corp (DWMS), started production in Liuzhou, Guangxi Zhuang Autonomous Region last April, according to a source at SGMW.

The new engines have been used in Chevrolet Lova and Spark in Yantai, Shandong Province. However, the engines with displacement of 1.0 liter and 0.8 liter are still provided by DWMS.

SGMW, with two manufacturing bases in Liuzou and Qingdao respectively, sold 37,431 Chevrolet Spark units in the first eleven months of 2008, representing a year-on-year growth of 22%.

General Motors holds 34% stake in the joint venture.