By on February 11, 2012

Despite the fact that the Chinese new car market barely grew last year, and ignoring commentators that predict a flat market for this year also, GM has expansionist plans for the region. According to Bloomberg, GM should shortly receive approval to build a $1.1 billion factory in China, which will expand GM China’s annual capacity by 300,000 units.

The plant belonging to GM’s joint venture with SAIC will be located in Wuhan, Hubei province. Shanghai GM says no formal decision has been reached. Last December, China announced that foreigners are no longer encouraged to invest into car companies. GM already is invested …


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10 Comments on “Groundbreaking News: GM China Said To Build New Factory...”

  • avatar

    It takes several years to build an assembly plant and bring it up to capacity. Who cares what commentators are predicting for this year.

    • 0 avatar

      I agree. But it also makes a lot of sense for GM and other auto makers to do this. They’ll make more money in these emerging markets with exponential growth forecasts than they ever will in the good ol’ US of A. And making them in Mexico has also proven to be a boon to quality and profitability for all auto makers who make them there.

      With the current political climate what it is and America’s economic policy favoring producing in foreign countries, it stands to reason that more profit will be made by companies who produce in foreign countries and import them into the US. That’s the bottom line: profits! They can’t make a decent profit in the US but they can make beaucoup profits producing in foreign countries.

      I would like to see GM sell Buick to its China arm and import Chinese-made Buicks into America. Big money to be made there. I also would like GM to fold GMC into Chevrolet to streamline its operations and get rid of this redundancy. They can make GMC a separate and unique upgraded trim level, like Denali or Sierra.

  • avatar

    It’s wonderful to see the US taxpayers helping to create jobs in a country that competes with us. Maybe China can forgive a little of our national debt and return the favor.
    Didn’t think so.

  • avatar
    Secret Hi5

    Schmitt said: “. . . GM has expansionist plans for the region.”

    –I think you meant to use the word “expansion” instead of “expansionist,” which has a quite a different meaning.

  • avatar
    Educator(of teachers)Dan

    I’ll agree with HighDesertCat and say that GM might as well do all Buick designing and manufacturing in China and import them here. Given that China buys roughly 2x as many given Buicks in a year as the USA does it might as well be a Chinese based brand.

    • 0 avatar

      That would really just through thousands of jobs that this country desperately needs out the door.

      • 0 avatar

        What we need to do is elect politicians who enact legislation that would make it more advantageous for businesses to produce inside America instead of sending jobs overseas or to Mexico and Canada.

        No one complains about the domestic car makers producing in Canada, something they have done since the invention of the wheel. Yet there are so many complaints about producing in Mexico and Asia, or the foreigners coming over here, to America, and providing sorely needed jobs to Americans.

        If the domestic auto manufacturers made things worth buying they would not have lost so many sales and market share to the foreigners during the last three decades of the mass exodus.

        I bet all those Americans working at the transplants making cars for Americans right here in America are happy to be working without the UAW collectively bargaining away their jobs, like we saw during the past eight years.

        Even if none of the Chinese-made GM products ever come to America, it means that GM will be making profits which is something that the US automakers are hard-pressed to do with sales to the North American market alone.

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