GM launches $293 mln LCV venture with FAW in China

Shanghai, August 31 (Gasgoo.com) General Motors announced on Sunday the establishment of a 50-50 light commercial vehicle joint venture with major Chinese automaker FAW Group Corp.

GM said in a statement that the two companies are making a combined investment of 2 billion yuan ($293 million) for the new company, and will significantly expand FAW's existing light commercial truck business,

The venture, based in the northeast China city of Changchun in Jilin province, will use two existing FAW plants in Changchun and the city of Qujing, Yunnan province, with combined annual capacity of roughly 90,000 vehicles, said GM China President Kevin Wale.

A third plant, currently under construction in Harbin, will add 100,000 units of capacity by the end of next year, he said.

"This is an important complement to the rest of our portfolio," Mr. Wale said. "We are well established in passenger vehicles and mini commercial vehicles and we haven't had a presence in the truck segment. Adding a truck portfolio rounds that out."

The venture aims to sell between 80,000 and 90,000 vehicles this year and 100,000 next year, and vehicles made at the new venture may also be exported under a GM brand in global market in the future, according to GM.

 
Executives of GM announced on August 30 a new jv with FAW Group to make light-duty trucks.