GM's new plant in Guangxi starts its engine

Shanghai Automobile Industry (Group) Company (GM) announced on Monday that it will open a new engine plant at its joint venture SAIC-GM-Wuling Automobile Co., Ltd, (SGMW) in Liuzhou, China.

The 2 billion yuan new engine plant, adjacent to the existing factory in Liuzhou, is expected to have a capacity of 300,000 units a year and begin production of 1.1-liter and 1.2-liter engines in August, GM said in a statement.

The new engine plant will facilitate the development of new products at the minicar factory, which currently buys engines and related parts from external suppliers, the company said.

SGMW was co-established by three partners, General Motors, Shanghai Auto and Wuling Automobile Co., Ltd. GM and SAIC owns 34% and 50.1% shares respectively Wuling Automobile Co,.Ltd with Wuling Auto keeping the remaining share. In the first quarter of 2007, sales of the joint venture increased by 27% or 160,000 units compared with the same period last year. In 2006 the company sold a total of 460,155 units, making it the largest mini-car manufacturer in China.