On Wednesday, GM’s Chinese arm Shanghai GM broke ground on a new manufacturing base in the central China city of Wuhan, Hubei. The facility represents a $1 billion (RMB 7 billion) investment that will have an annual production capacity of 300,000 vehicles and will be able to manufacture small and medium-size passenger cars, SUVs, and “new energy vehicles.”
Shanghai GM Wuhan, as the plant is being called, will be located on 0.9 square miles (2.32 square kilometers) and will include press, body, paint, and general assembly shops along with support facilities. As you would expect, the plant will utilize GM’s advanced global manufacturing processes as well as world-class production and management system. Completion and production commencement is scheduled to begin in 2014.
The GM Authority Take
Extra production capacity in China is never a bad thing. Perhaps The General intends on using it to build Cadillacs for the Chinese market… because let’s face it — selling around 2,500 Caddys a month is not an option.