General Motors Launches Venture in China

General Motors China, a subsidiary of General Motors, has partnered with FAW Group to launch a venture that will produce vans and light-duty trucks for the Chinese market. The nearly $300 million venture will result in a capacity of more than 200,000 by the final months of 2010.

While General Motors China and FAW Group will use existing automobile factories, there will also be a new assembly plant built to aid in this venture. In the future, some of the vehicles may be exported to other places in the world but for right now the idea is to satisfy China’s growing demand.

General Motors has been attempting to improve their business model since filing for bankruptcy earlier in the year. With this partnership, they hope to tap into the growing Chinese market.

“It will address demand in China and other markets for high-quality, affordable products in one of the industry’s most robust segments,” said Nick Reilly of General Motors, “while complementing the portfolio of products that GM and FAW currently offer.”

FAW Group is a state-owned business and was the first auto manufacturer in the country of China. Currently, it is the country’s largest vehicle maker. Founded in 1953, it is headquartered in the city of Changchun.

Chinese Car (Image: Flickr)