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SAIC-GM-Wuling adds capacity
SHANGHAI -- SAIC-GM-Wuling Automobile Co. is adding new capacity in its hometown of Liuzhou. Besides a new production line, throughput is being increased in "all critical areas, from the body shop to the paint shop," says General Motors spokesman Henry Wong.
The joint venture is also building new manufacturing and engine plants in Qingdao in the northeast China province of Shandong. Previously, it had shipped vehicles from the Liuzhou plant for assembly in Qingdao.
The new capacity at both locations is scheduled to be up and running in the second quarter of 2008. At that time, the joint venture will have a total capacity of 876,000 units annually, including 586,000 in Liuzhou and 290,000 in Qingdao, says GM.
In 2006, the joint venture produced 295,883 vehicles, says Automotive Resources Asia, a unit of J.D. Power and Associates.
The new production lines will use many of the same designs and specifications as GM plants worldwide, says GM.
The joint venture produces Wuling-badged minivans and pickups, and the Chevrolet Spark small car. All three will be produced on the same line.
GM owns 34 percent of SAIC-GM-Wuling. Shanghai Automotive Co. owns 51 percent, and Wuling Automotive 15 percent.
GM wants to boost its share, but Shanghai Automotive is resisting any change in ownership structure, says a supplier to the joint venture.
In 2007, SAIC-GM-Wuling sold 548,945 units, including 32,510 Chevrolet Sparks.
The joint venture exported a few thousand vans to Southeast Asian countries in 2007. Nick Reilly, president of GM's Asia Pacific operations, does not rule out boosting exports in the future.
But, "at the moment, we just can't build capacity fast enough for the Chinese market," he says.
The United States is not a target for future exports from SAIC-GM-Wuling, says Reilly.
Says Reilly: "There is just not a demand (in the United States) for that kind of vehicle."
The joint venture is also building new manufacturing and engine plants in Qingdao in the northeast China province of Shandong. Previously, it had shipped vehicles from the Liuzhou plant for assembly in Qingdao.
The new capacity at both locations is scheduled to be up and running in the second quarter of 2008. At that time, the joint venture will have a total capacity of 876,000 units annually, including 586,000 in Liuzhou and 290,000 in Qingdao, says GM.
In 2006, the joint venture produced 295,883 vehicles, says Automotive Resources Asia, a unit of J.D. Power and Associates.
The new production lines will use many of the same designs and specifications as GM plants worldwide, says GM.
The joint venture produces Wuling-badged minivans and pickups, and the Chevrolet Spark small car. All three will be produced on the same line.
GM owns 34 percent of SAIC-GM-Wuling. Shanghai Automotive Co. owns 51 percent, and Wuling Automotive 15 percent.
GM wants to boost its share, but Shanghai Automotive is resisting any change in ownership structure, says a supplier to the joint venture.
In 2007, SAIC-GM-Wuling sold 548,945 units, including 32,510 Chevrolet Sparks.
The joint venture exported a few thousand vans to Southeast Asian countries in 2007. Nick Reilly, president of GM's Asia Pacific operations, does not rule out boosting exports in the future.
But, "at the moment, we just can't build capacity fast enough for the Chinese market," he says.
The United States is not a target for future exports from SAIC-GM-Wuling, says Reilly.
Says Reilly: "There is just not a demand (in the United States) for that kind of vehicle."
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