Great Wall to build new engine plant, targeting America market

Great Wall Motor Co., Ltd plans to invest RMB1 billion to build a new engine plant with an annual capacity of 200,000. The move is part of a concerted push to roll out more passenger cars, and break into United States and western markets. Great Wall said all the investment will be self-funded, without the need to sell additional shares on the stock market in a short term.

Located in Hebei Province in northern China, Great Wall Motor Co., Ltd is one of the biggest private-run auto makers in China and the first private-owned enterprise that is listed on the Hong Kong stock market, raising HKD1.7 billion on its own. Its product line covers Pickup, SUV, CUV, RV, and particularly famous for its Hover CUV.

Insiders from Great Wall said the diesel and small-sized engines will be their focus as they will help Great Wall boost exports to global markets. Diesel engine has already become the hot-selling product in Europe engine market. Great Wall has exported 500 Hover to Italia last September, and according to Great Wall’s overall development plan for oversea market drafted in 2006, the company aims to export 150,000 vehicles by 2010. Wang Fengying, general manager of Great Wall, expects the company to enter Greece, Portugal, Spain and North America as early as this year.
 
Priced at RMB110,000 – 140,000, Great SUV only sell at less than EUR20,000 in Italia, EUR2,000 -3,000 lower than that of other brand. According to Wang Fengying, sedans will also become a main force for export.