FAW, GM to form commercil car venture on Aug. 30

China FAW Group Corporation and General Motors Corporation will form a joint venture on August 30, 2009, the first Chinese commercial-vehicle venture for GM.

Currently, the Chinese government has approved the establishment of the venture, whose production bases are in Heilongjiang Province and Yunnan Province. In addition, the two sides have signed a cooperation agreement.

Both parties planed to establish a commercial-vehicle venture at the beginning of 2009, but the plan was put off by GM's bankruptcy protection. On July 10, 2009, GM got out from its troubles, and then the venture was born.

GM has already had two vehicle ventures in China, namely, Shanghai General Motor Co., Ltd. and SAIC-GM-Wuling Automobile Co., Ltd. (SGMW). In detail, Shanghai General Motor is engaged in producing passenger vehicles, and the other is a small car producer.

Notably, the two ventures reached a vehicle sales volume of over 800,000 in China in the first half of 2009.