GM in China (1): plan to boost production capacity of vehicles and engines

GM enhances alliances with SAIC and FAW, targeting production of 4.25 million in 2015



 GM's business in China has been growing rapidly since 2009. In 2010, the company boosted sales of vehicles (including exports and sales of imported vehicles) by 28.8% year-on-year to 2.35 million. GM expects double-digit growth in the future, targeting to sell more than 5 million vehicles in 2015.

 In the meantime, GM announced that it would gradually increase the production capacity of its joint venture plants in China from 2.15 million per year in July 2011 to 3.17 million at the end of 2012 and further to 4.07 million in 2015, which is assumed to be further enhanced.

 At the same time, the company will increase production capacity of engines from 1.57 million a year in July 2011 to 2.57 million at the end of 2012, which it plans to further boost to 3 million in 2013 or later.

 The following reports GM's recent activities in China on the latest medium-term business plan and the expansion of production of vehicles and engines.

 In addition, concerning GM's mid-term business and model plans, development and sales structure in China, we report in "GM in China (2)" issued on August 18, 2011.

Summary of GM's medium-term business plan in China (Business policy & Production target)

 Promotion of vehicle electrification and cultivation of new segments
  * Concerning the introduction of new models, to focus on energy-efficient/eco-friendly models
* Through collaboration with the Chinese government/local companies/academia, to provide a vehicle electrification solution specialized for the market in China.
* To enhance marketing of uncultivated markets such as Cadillac high-end vehicle/midsize passenger car under Baojun brand/light-duty commercial vehicles in order to grow further.
* To strengthen automotive technology/product development at "Pan Asia Technical Automotive Center Co., Ltd." (PATAC), which is a joint R&D center with SAIC (SAIC Motor Corp.), integrating it in GM's global R&D network.
 To strengthen an alliance with SAIC
  * To share technology in the field of high-performance engine/new energy vehicle
* To jointly cultivate emerging markets including India
  Shanghai GM: A five-year green plan
* To improve powertrain including an internal combustion engine
* To promote development/introduction/volume-production of new energy vehicles including EVs/HEVs
* To promote technology for hydrogen energy, eventually aiming to achieve zero emissions
SAIC-GM-Wuling Automobile:
* In addition to mini vehicles/compact passenger cars, to enter the low-priced midsize passenger car market with the launch of the Baojun 630 in August 2011.
 Alliance with FAW (China FAW Group), to jointly enter the light-duty vehicle market
  * To form an alliance including joint development, production, and marketing in the field of SUV/MPV/light-duty truck/Pickup/small bus and related parts.
* To market products under two brands - Jiefang and GM
  FAW-GM (FAW-GM Light Duty Commercial Vehicle):
* Concerning light van/small bus, to introduce only high-end models
* To introduce light-duty vehicles and the technology of GMC/GM
* To utilize GM's global sales network, aggressively enter the light-duty vehicle market in the world
(in China)
 2011: more than 2.55 million (including 1.15 million by three companies in the Shanghai GM group, 1.3 million by SAIC-GM-Wuling Automobile, and about 100,000 by FAW-GM)
 2015: more than 4.25 million (including about 2 million by three companies in the Shanghai GM group, 2 million by SAIC-GM-Wuling Automobile, and 250,000 by FAW-GM)

Source: GM (China)/GM press release (Feb. 15/Apr. 18/Jun. 14, 2011), various media reports

(Note) FAW-GM's 2015 production target of 250,000 is based on a media report in 2010.