SAIC-GM-Wuling begins production in Chongqing

SAIC-GM-Wuling (SGMW) has begun production at its new manufacturing base in Chongqing. It also signed an agreement for the second phase of production at the facility.

The first phase of production at the Chongqing base represents initial investment of RMB 6.6 billion (Rs 6,633 crore) by the joint venture. It has an initial annual manufacturing capacity of 400,000 vehicles and 400,000 engines to serve the Chinese market.

“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.”

Chongqing is SGMW’s third production base, joining Liuzhou, Guangxi, and Qingdao, Shandong. The new base is taking advantage of learnings from the other bases as well as the resources of SGMW’s parent companies – GM China, SAIC and Wuling Motors. It has adopted advanced manufacturing processes and technology for commercial vehicle production.

The new facility gives SGMW a total of 2 million units of annual production capacity for both vehicles and engines. It will strengthen SGMW’s market competitiveness in line with its “low cost, high value” philosophy for the production of vehicles.

“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.”

As a sign of the importance of SGMW’s Chongqing base, several members of the Chongqing government attended today’s opening ceremony. They included Chongqing Municipality Mayor Huang Qifan.

SAIC-GM-Wuling Automobile Co. Ltd. (SAIC-GM-Wuling) was launched on November 18, 2002. SAIC has a 50.1 percent stake, GM China a 44.0 percent stake and Wuling Motors a 5.9 percent stake. It is based in Liuzhou, Guangxi, in southwestern China. It manufactures a range of Wuling brand mini-trucks and minivans as well as a growing family of Baojun brand passenger cars. In 2013, the joint venture had record domestic sales of 1,584,920 vehicles.

General Motors traces its roots back to 1908. GM has 10 joint ventures, two wholly owned foreign enterprises and more than 58,000 employees in China. Passenger cars and commercial vehicles are sold under the Baojun, Buick, Cadillac, Chevrolet, Jiefang, Opel and Wuling brands.