General Motors and Chinese partners SAIC Motor Corporation Limited and Wuling Motors have announced that they will build a new assembly plant in China's Chongqing Municipality, one of the country's largest cities. When it opens, it will be the partners' third assembly plant in China.
The first phase of the plant's construction is scheduled to begin next year and wrap up in 2015. When finished, the roughly $1 billion (6.6 billion yuan) plant will have an annual capacity of 400,000 cars and engines. The partners said that they will pick which vehicles to build there closer to the plant's inauguration.
Although the plant will be used by GM, SAIC and Wuling, it will exclusively run GM's global manufacturing processes and operate under its quality standards.
Before work on the factory can begin, the companies must obtain the Chinese governments' nod of approval, a process which can take up to several months.
GM, SAIC and Wuling are on a quest to build 2 million cars and trucks a year in China by the year 2015. The third assembly plant will complement the existing two and help them reach their ambitious goal.
Photo by Ronan Glon.