GM expands in China with $293-million joint venture with FAW
31 Aug 2009
Having emerged out of bankruptcy, General Motors, once the world's largest auto maker is looking towards China, the world's fastest-growing auto market, to increase sales; it has signed a $293-million joint venture with the Chinese state-owned carmaker FAW to make light trucks and vans.
General Motors China and China FAW Group Corp. (FAW) jointly announced yesterday of the 50-50 joint venture to make light trucks and vans in the northeast Chinese city of Changchun in Jilin province.
The joint venture has registered capital of RMB1.2 billion and total investment of RMB 2 billion, the company said.
The new Chinese venture will focus on the production and sale of light trucks and vans and also engage in R&D, exports and after sales support.
''Our new joint venture combines the expertise of two industry leaders in a partnership that benefits both,'' said Nick Reilly. ''It will address demand in China and other markets for high-quality, affordable products in one of the industry's most robust segments, while complementing the portfolio of products that GM and FAW currently offer.''
''It sends an important signal of GM's ongoing commitment to China through our strategy of working in China, with China and for China, he added.