Economic Observer Online
June 20, 2013
By Yang Xiaolin (杨小林)
Translated by Zhu Na
Original article: [Chinese]

Six months after signing a contract with the local government, a joint venture between SAIC Motor Corporation Limited, General Motors and Liuzhou Wuling Motors Co. held a ground breaking ceremony for a its new car manufacturing base in Chongqing on June 18.

SAIC GM Wuling Automobile Co. Ltd' (SGWM or 上汽通用五菱) said that 6.6 billion yuan will be invested in the first phase of the construction of their third manufacturing base.

The plant is expected to be operational by 2015 when it will be capable of turning out 400,000 vehicles and 400,000 engines.

After two years' investigation, SGWM chose Chongqing for its "low cost, high value" advantage. A spokesperson from SGMW told the EO that after the Chongqing Base is completed, SGMW will be better placed to meet the demands of the midwest market.

Chang'an Automobile Co. (长安汽车), SGWM's competitor, also has a large manufacturing presence in the city.

SGWM's Liuzhou (柳州) manufacturing base can turn out 800,000 vehicles a year. The company's Qingdao (青岛) plant recently increased annual production capacity to 500,000 following the completion of a second-phase extension. A new manufacturing base in Baojun (宝骏), which began producing vehicles last Novemeber, has an annual production capacity of 400,000 vehicles.

With the addition of the Chongqing base, Wuling's annual production capacity is expected to increase to two million cars by the end of 2015.

SGWM dominates China's minivan market. SGMW sold 1.46 million vehicles in 2012.

Links and Sources
Economic Observer Online: GM Wuling Announces New Chongqing Minivan Plant
Economic Observer Online:The Rebirth of Chongqing