In a big step for General Motors and its growing influence in the Chinese market, SAIC-GM-Wuling (SGMW) celebrated the official start of production at its new facility in Chongqing China, while also revealing that it has signed an agreement to kick off the second phase of long term production at the new facility signifying the ambitious plans SGMW has for the facility.
This inaugural phase of manufacturing production at the new plant is the first physical result of an inaugural 6.6 billion RMB investment by the young joint venture company in a bid to increase production capability in the country. The facility has the capability of producing 400,000 vehicles as well as 400,000 engines to help it meet the increased demand in new vehicles from Chinese consumers.
“The Chongqing base will support SGMW’s continued growth,” said SGMW President Shen Yang during today’s ceremony. “At the same time, it will contribute to the economy of Chongqing and southwestern China while benefiting the development of China’s automotive industry.”
The Chongqing plant is the third facility to be opened by SGMW and joins the company’s existing plants in Liuzhou, Guangxi, and Qingdao Shadong. Unlike those plants however, the Chongqing base will benefit from the lessons learned at the other three plants while also being able to benefit from resources provided by its parent firms (GM China, SAIC, and Wuling) to help it stand out from other SGMW facilities, while also encouraging growth and innovation at the same time. It will also play a key part in SGMW’s long term growth, with the new plant allowing the firm to produce an additional 2 million units of additional production capability for both vehicles and engines. These new figures will allow the company to enhance its overall competitiveness while also solidifying its “low cost high value” approach to vehicle production which has allowed it to emerge as a key player in the Chinese marketplace.
Construction of the facility was completed in a relatively short 15 months,” said SGMW Chongqing Branch Office General Manager Huang Chunsun. “This was the result of the close partnership between our joint venture, our parent companies and the government.”
With competition in the Chinese market heating up, it is nice to see SGMW take the necessary steps it needs to not only survive in the long term, but to also bolster and secure its growth in the fierce battle for precious sales in China’s mainstream auto market.