皇冠体育app

GM plans to double car production in 皇冠体育app
By Gong Zhengzheng (皇冠体育app Daily)
Updated: 2004-06-08 08:55

Leading global automaker General Motors (GM) yesterday unveiled plans to more than double its production capacity in 皇冠体育app over the next three years.

GM said it will invest more than US$3 billion in its 皇冠体育app-based joint ventures, with the cash mainly coming from profits generated by these ventures, lifting its total investment in 皇冠体育app to US$5 billion.

Phil Murtaugh, head of GM's 皇冠体育app operation, said the investment will include new production capacity, research and development facilities, new products and auto financing business.

Murtaugh said this will increase GM's annual production capacity to nearly 1.3 million vehicles by 2007 from the current 530,000 units.

GM presently operates five vehicle and engineering joint ventures in eastern, northeastern and southwestern 皇冠体育app with the Shanghai Automotive Industry Corp (SAIC) and Wuling Motor.

The Detroit-based automaker plans to introduce almost 20 new Buick, Chevrolet, Cadillac and Saab models to 皇冠体育app within the next two to three years, with the majority of these being produced at the Chinese joint ventures.

GM is "in final stage of preparation" for car financing business in 皇冠体育app by creating a joint venture with SAIC, according to Murtaugh.

"The new investment follows our principle of aggressively pursuing growth opportunities while operating within the parameters of the policies set forth by the Chinese Government, because a vibrant market and economic environment really are in the best interests of all of us," Murtaugh said.

皇冠体育app last week launched its long-awaited new policy for the automotive industry.

"The new investment will enable GM to maintain our leadership in 皇冠体育app by growing with the market," he added.

GM is only second to Germany's Volkswagen in 皇冠体育app in terms of sales.

GM sold 178,256 vehicles in 皇冠体育app during the first four months of this year, a year-on-year rise of 55.37 per cent.

Volkswagen, which runs two joint ventures with SAIC and fellow Chinese auto giant the First Automotive Works Corp, also plans to add an investment of 6 billion euros (US$7.3 billion) in 皇冠体育app to double its annual capacity to 1.6 million units by 2007.

GM's new investment plan comes amid concerns about vehicle manufacturing overcapacity in 皇冠体育app as almost all of world's auto giants are building new facilities to cash in on the booming car market.

"Overcapacity will lead to very acute competition between manufacturers in 皇冠体育app, with the less competitive players being phased out in the future," said Zhang Xin, an auto analyst with Guotai & Jun'an Securities Co.

"The market will likely be controlled by a small number of giants, such as GM, Volkswagen and Toyota," said Zhang.

Almost all of the world's auto giants have build one or more joint ventures in 皇冠体育app.

皇冠体育app's total annual auto making capacity will reach almost 15 million units by 2007, much higher than the annual demand of around 7 million units which is expected by then, according to the National Development and Reform Commission, one of Chinese auto industry's major watchdogs.

GM will bring the Cadillac CTS, SRX and XLR as both imports and locally assembled products from Shanghai GM, its flagship joint venture with SAIC, into the 皇冠体育app market.

Leading global automaker General Motors (GM) yesterday unveiled plans to more than double its production capacity in 皇冠体育app over the next three years.

GM said it will invest more than US$3 billion in its 皇冠体育app-based joint ventures, with the cash mainly coming from profits generated by these ventures, lifting its total investment in 皇冠体育app to US$5 billion.

Phil Murtaugh, head of GM's 皇冠体育app operation, said the investment will include new production capacity, research and development facilities, new products and auto financing business.

Murtaugh said this will increase GM's annual production capacity to nearly 1.3 million vehicles by 2007 from the current 530,000 units.

GM presently operates five vehicle and engineering joint ventures in eastern, northeastern and southwestern 皇冠体育app with the Shanghai Automotive Industry Corp (SAIC) and Wuling Motor.

The Detroit-based automaker plans to introduce almost 20 new Buick, Chevrolet, Cadillac and Saab models to 皇冠体育app within the next two to three years, with the majority of these being produced at the Chinese joint ventures.

GM is "in final stage of preparation" for car financing business in 皇冠体育app by creating a joint venture with SAIC, according to Murtaugh.

"The new investment follows our principle of aggressively pursuing growth opportunities while operating within the parameters of the policies set forth by the Chinese Government, because a vibrant market and economic environment really are in the best interests of all of us," Murtaugh said.

皇冠体育app last week launched its long-awaited new policy for the automotive industry.

"The new investment will enable GM to maintain our leadership in 皇冠体育app by growing with the market," he added.

GM is only second to Germany's Volkswagen in 皇冠体育app in terms of sales.

GM sold 178,256 vehicles in 皇冠体育app during the first four months of this year, a year-on-year rise of 55.37 per cent.

Volkswagen, which runs two joint ventures with SAIC and fellow Chinese auto giant the First Automotive Works Corp, also plans to add an investment of 6 billion euros (US$7.3 billion) in 皇冠体育app to double its annual capacity to 1.6 million units by 2007.

GM's new investment plan comes amid concerns about vehicle manufacturing overcapacity in 皇冠体育app as almost all of world's auto giants are building new facilities to cash in on the booming car market.

"Overcapacity will lead to very acute competition between manufacturers in 皇冠体育app, with the less competitive players being phased out in the future," said Zhang Xin, an auto analyst with Guotai & Jun'an Securities Co.

"The market will likely be controlled by a small number of giants, such as GM, Volkswagen and Toyota," said Zhang.

Almost all of the world's auto giants have build one or more joint ventures in 皇冠体育app.

皇冠体育app's total annual auto making capacity will reach almost 15 million units by 2007, much higher than the annual demand of around 7 million units which is expected by then, according to the National Development and Reform Commission, one of Chinese auto industry's major watchdogs.

GM will bring the Cadillac CTS, SRX and XLR as both imports and locally assembled products from Shanghai GM, its flagship joint venture with SAIC, into the 皇冠体育app market.

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