On June 18, 2013, SAIC-GM-Wuling (SGMW) — GM’s mini-commercial vehicle joint venture in China that produces low-cost commercial vehicles under the Wuling brand — celebrated the groundbreaking ceremony for its Chongqing manufacturing base.
The plant represents a RMB 6.6 billion (USD $1.1 billion) investment, with the facility’s first phase being capable of producing up to 400,000 vehicles a year starting in 2014. The facility will adopt GM’s advanced global manufacturing systems and processes “while maintaining SGMW’s “low cost, high value” business model”, according to General Motors.
The new SGMW manufacturing base will allow the venture to meet strong demand for its vehicles, especially in China’s central and western regions. In 2012, SGMW sold over 1.4 million vehicles in the domestic market, making it the sales leader among Chinese mini-commercial vehicle makers. Through May of 2013, SGMW sales in China were over 680,000 vehicles.
Located in midwestern China, Chongqing is one of China’s largest cities. It’s an industrial center with a well-established infrastructure, a favorable investment environment, and a developed automotive components industry.
SGMW currently operates the following manufacturing bases:
| PLANT NAME | ANNUAL PRODUCTION CAPACITY | NOTES |
|---|---|---|
| LIUZHOU, GUANGXI | 800,000 | SGMW'S ORIGINAL MANUFACTURING BASE |
| QINGDAO, SHANDONG | 500,000 | |
| LIUZHOU BAOJUN | 400,000 | SGMW'S PASSENGER CAR PRODUCTION BASE |
With the Chongqing base, SGMW will be capable of producing over 2 million vehicles per year by the end of 2015.
Comments
That’s an awful lot of bread boxes. If GM can make $200 on each of them, they’re still looking at 0.4 billion in profit. A nice profit for its subsidiary.
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