GM Announces Plans for 4 New China Plants

by Christopher Freeburn | April 22, 2013 11:18 am

GM Announces Plans for 4 New China Plants

ChinaFlag 300x225 GM Announces Plans for 4 New China Plants[1]General Motors (NYSE:GM[2]) plans to expand its production presence in China over the next two years[3].

A company executive sales the U.S. automaker will build four new assembly facilities in China, adding 6,000 workers, by 2015. Chinese authorities will have to authorize the construction of any new facilities, the Detroit Free Press noted.

Along with its Chinese manufacturing partners, GM is expected to spend $11 billion over the next three years to increase production capacity in China.

In addition to building more vehicles in China, a the GM official noted that the company might consider exporting Chinese-made vehicles to the U.S.

GM’s sold 2.8 million vehicles in China last year, up 11% from the prior year.  In 2012, it exported 77,000 vehicles from China to other countries. That is expected to rise to between 100,000 and 130,000 vehicles this year.

By the end of this year, GM estimates that it will have 4,200 dealers in China.

Last month, GM laid off almost 600 workers at its Brazilian production facility[4] in the face of lackluster demand and higher labor costs.

Shares of GM slipped slightly in Monday morning trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/04/ChinaFlag.jpg
  2. GM: http://studio-5.financialcontent.com/investplace/quote?Symbol=GM
  3. expand its production presence in China over the next two years: http://www.equities.com/news/industrial/2013-04-20/1307329/gm-to-open-4-new-assembly-plants-in-china-by-end-of.story
  4. laid off almost 600 workers at its Brazilian production facility: http://investorplace.com/2013/03/gm-fires-almost-600-auto-plant-employees/

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