Shanghai GM to establish new production site in Shanghai, GM CEO says

Gasgoo.com (Shanghai January 16) - General Motors is preparing to establish a new production site in Shanghai via the Shanghai GM joint venture, Beijing News reported today, quoting a statement made by CEO Dan Akerson during an interview at GM's headquarters in Detroit. However, Mr. Akerson did not reveal the address or production capability of the new site.

Shanghai GM currently has three key production sites in the country, Beisheng (Shenyang, Liaoning), Dongyue (Yantai, Shandong) and Jinqiao (Shanghai). The sites boast annual production numbers of 200,000, 240,000 and 320,000 vehicles, respectively. However, Shanghai GM's annual sales are beginning to exceed one million units, placing a huge strain on the joint venture's manufacturing resources. The joint venture has already launched expansion programs at those sites, with third-phase expansion at its Beisheng factory having begun last year and expected to be completed by 2014, boosting that site's production capability by 300,000 units.

Shanghai GM's is hoping to see its domestic sales in 2015 reach two million vehicles, so finding ways to improve its production numbers is crucial for the JV.