To celebrate a 10-year partnership, SAIC-GM-Wuling (SGMW) opened a new 2-million-square-meter passenger car production base, which will initially be used to produce Baojun models. The facility is located in Liuzhou, Guangxi Zhuang Autonomous Region.
The massive facility also comes at a massive price, as the investment for the first phase of the plant is RMB 8 billion ($1.28 billion). The plant, which will follow GM’s Global Manufacturing System and other processes is it churns out vehicles, has an annual manufacturing capacity of 400,000 units.
Additionally, a powertrain manufacturing facility capable of producing up to 400,000 engines annually is under construction and will be found at the same location, while several local and global suppliers have set up operations at the site. The powertrain facility is set to fire up September 2013.
With forward thinking in mind, SGMW also plans to enhance its R&D capability by integrating engineering design and testing resources, along with establishing a systematic capability for product development and technical research — all of which will happen on the grounds of the new facility. The aim is to fully support the overall development strategy of SGMW by helping it achieve sales of 2 million vehicles annually, grow its export business and enhance its technology by the end of China’s 12th Five-Year Plan period.