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SAIC-GM-Wuling breaks ground for Chongqing manufacturing base

CHONGQING – SAIC-GM-Wuling (SGMW), GM’s mini-commercial vehicle joint venture, broke ground today (June 18) for its Chongqing manufacturing base.

With investment of ¥6.6 billion ($1.1 billion), the first phase of the project will have an annual production capacity of 400,000 vehicles. It will begin building current Wuling models in 2014. The facility will adopt GM’s advanced global manufacturing systems and processes while maintaining SGMW’s “low cost, high value” business model.

The Chongqing base will help SGMW keep up with strong demand for its products, especially in China’s central and western regions. Last year, the joint venture sold more than 1.4 million vehicles in the domestic market, making it the leader among Chinese mini-commercial vehicle producers. In the first five months of 2013, SGMW’s sales in China exceeded 680,000 vehicles. 

SGMW’s original manufacturing base in Liuzhou, Guangxi, has an annual production capacity of 800,000 vehicles. Its production base in Qingdao, Shandong, has an annual capacity of 500,000 vehicles. The joint venture’s Liuzhou Baojun passenger car production facility, which opened last November, has an annual capacity of 400,000 vehicles. With the Chongqing base, SGMW will be able to produce more than 2 million vehicles per year by the end of 2015.

Chongqing is one of China’s largest cities and an industrial center in midwestern China. It has well-established infrastructure, a favorable investment environment and a developed automotive components industry.

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