SAIC-GM-Wuling has officially begun construction of its new automobile and engine production site in Chongqing, CQET reported today. Chongqing Mayor Huang Qifan and Deputy Mayor Leng Yueming, as well as SAIC-GM-Wuling General Manager Shen Yang, all attended the foundation-laying ceremony. At the same time, 16 SAIC-GM-Wuling accessory manufacturers signed an agreement to support the site, boosting its significance in the joint venture's global operations.
The 160 square meter SAIC-GM-Wuling factory will be located in Chongqing's Liangjiang New Area. The JV has invested 6.6 billion yuan ($1.07b) in first-phase construction at the site, which will boost its annual production capacity to 400,000 automobiles and 400,000 engines by 2014. The site is estimated to be able to bring in 13 billion yuan ($2.11b) in sales for SAIC-GM-Wuling after it begins operation.
In Mr. Huang's address at the ceremony, he mentioned his desire to see Chongqing become a major city for the Chinese automobile industry. Over two million vehicles were manufactured in the city last year. Mr. Huang hopes to see that number exceed four million by 2017. In addition to supporting local enterprises such as Changan Automobile, the city has also taken steps to attract automobile and auto part manufacturers from other parts of the country and the world. To date, eight major automobile manufacturers and over 1,000 auto part producers have established production sites in the city. Mr. Huang believes that the cooperating between Chongqing and SAIC-GM-Wuling will not only help increase the joint venture's competitiveness, but will also further boost Chongqing's reputation as a major automotive center in China.
