Cargo Business Newswire

Thursday, April 24, 2014

General Motors to spend $12B in China

General Motors Company, the world's third largest car manufacturer by sales, will invest $12 billion in China through 2017 and build more factories in 2015 as it tries to stay competitive, especially with Volkswagen AG.

GM forecasts sales growth between 8 and 10 percent in 2014, matching the overall growth of the Chinese auto market, while Volkswagen will aim at a 10 percent expansion from last year's record, which would be more than 3.5 million cars.

Outselling GM in China in 2013 helped the Volkswagen best GM as the world's second-largest car manufacturer.

GM announced Sunday it would open five new plants in China next year as part of a plan to increase manufacturing capacity by 65 percent through 2020.

China's domestic market is expected to expand by 8-10 percent this year, trailing 2013′s 13.9 percent growth when 21.98 million units were sold. In comparison, the U.S. market grew by 7.6 percent in 2013 to 15.6 million vehicles sold.

General Motors will build four new car assembly plants in Shenyang, Chongqing, Jinqiao and Wuhan and an engine plant in Shenyang. The company aims to sell 100,000 of its Cadillac sedans, which will be assembled in the Jinqiao plant, through 2015, up from 50,000 in 2013.

GM is betting on robust growth of its luxury brand and plans to launch two new models in 2014 and 2015.

For more of the Binary Tribune story: binarytribune.com