GM and China partners to expand low-cost exports

General Motors Co. said it and its Chinese partners will expand exports of low-cost micro-minivans to additional markets in South America, the Middle East and North Africa, apparently part of a wider strategy to become more globally competitive by using China as an export hub.

A GM venture will expand sales of the Wuling N200 in South America, the Middle East and North Africa, building up the auto maker's use of China as an export hub.

While GM's primary focus in China will continue to be the domestic market, the world's only major market growing in the global economic downturn, "we're keen to develop exports," said GM China President Kevin Wale in a telephone interview. "Obviously, as we develop more expertise and a broader range of product [in China] there will be more opportunities for us to export them."

GM said Thursday its three-way joint venture SAIC GM Wuling Automobile Co. will expand exports of two micro-minivans designed and produced in China: the Wuling N200 and N300 models, vehicles popular in the countryside. The company plans to sell both models under the Chevrolet in South America, the Middle East and North Africa.

GM, which holds a 34% stake in Wuling, didn't disclose any official target for volume. But Mr. Wale said GM expects the business to grow to shipments of "tens of thousands" of vehicles a year over time. Last year, GM exported 3,200 Wuling vans and 12,000 GM cars from China.