SAIC-GM-Wuling to invest USD468 mil. in NEV plant 25-Aug-2015 14:33 GMT News Investments

Will have an annual production capacity of 200,000 cars.

Chinese joint-venture (JV) automaker SAIC-GM-Wuling has announced that it will invest CNY3 billion (USD467.8 million) in a new energy vehicle (NEV) plant, reports Reuters news agency. SAIC-GM-Wuling, a JV between Shanghai Automotive Industry Corp, General Motors, and Wuling Automobile Co, held the groundbreaking ceremony for the new plant on 21 August in Liuzhou city. The NEV plant will have an annual production capacity of 200,000 cars. In addition, the automaker has begun production at its second plant in Liuzhou city, which will manufacture the JV's Baojun brand of cars. The plant has an annual production capacity of 400,000 vehicles.

Significance: SAIC-GM-Wuling formed the Baojun entry-level brand in 2010 and launched the Baojun 630 in 2011. Later, the JV rebadged the Chevrolet Spark small car as the Baojun Le Chi. In February 2014, the JV unveiled two models − the Baojun 610 hatchback and multipurpose vehicle. The JV also recently entered the sport utility vehicle (SUV) market in China by launching the Baojun 560, a compact SUV, under the budget Baojun brand. IHS Automotive forecasts the total sales of Baojun vehicles will reach 307,475 units in 2015 in China, up 71.7% year on year.

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