GM to battle VW in China with $15b investment, new plants
Published on Apr 21, 2014 6:57 AM
BEIJING (REUTERS) - United States (US) car giant General Motors Corp (GM) plans to invest US$12 billion (S$15 billion) in China from 2014 to 2017 and build more plants next year as it competes with aggressive rivals in the world's largest auto market.
GM expects its China sales to expand 8 per cent to 10 per cent this year, in line with the overall growth of the Chinese market, where foreign firms, such as Volkswagen AG, and domestic players like Saic Motor Corp vie for more market share.
"We are investing wisely and accelerating our vehicle development and manufacturing to keep pace with market demand. In total we are investing US$12 billion between 2014 and 2017," Mr Matt Tsien, president of GM China, said at the Auto China show in Beijing.
GM plans to build five more plants in China next year, as part of its efforts to ramp up manufacturing capacity there by 65 per cent by 2020, executives said on Sunday.
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