Groundbreaking News: GM China Said To Build New Factory
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 …
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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It takes several years to build an assembly plant and bring it up to capacity. Who cares what commentators are predicting for this year.
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.
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.
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.