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Mini-van maker merges to form JV
By Yu Qiao (China Daily)
Updated: 2005-06-02 09:56
One of China's biggest automakers said its mini-van joint venture with
General Motors (GM) has merged with an idle vehicle plant in Shandong Province
to speed up expansion.
SAIC Motor Corporation Limited has formed SAIC GM Wuling through the venture,
and will upgrade the vehicle plant in Shandong - previously controlled by
China's tobacco giant Yizhong Group - with an annual production capacity of
68,000 mini-vans, SAIC Motor said.
The plant in Shandong will be SAIC GM Wuling's mini-van base focusing on the
market in northern China, SAIC Motor said.
SAIC GM Wuling in Guangxi Zhuang Autonomous Region is the nation's
second-largest mini-van maker after Chang'an Motor Corp.
The venture's sales grew by 30.5 per cent to more than 235,000 units last
year.
The plant in Shandong started to produce vans and cars at the end of 2000
based on models from the then British automaker Rover.
It came to a standstill last year when permission was not granted from the
central government and sluggish sales were recorded.
SAIC GM Wuling will build a new 300,000-unit engine plant in 2007 in Guangxi,
SAIC Motor said.
The engine plant's annual production will expand to 500,000 units.
At present, SAIC GM Wuling produces Wuling-brand mini-vans and Chevrolet
Spark mini cars.
"The continuously growing mini vehicle segment is a shining point in China's
auto market. The segment has become our new growth engine," SAIC Motor said.
Dongfeng Motor Corp, another Chinese auto heavyweight, has forayed into the
mini-vehicle market recently.
Dongfeng's joint venture with Yu'an Group - a privately-owned motorcycle
producer in China - launched the first Dongfeng brand mini-van earlier this
month.
The venture plans to increase annual output from an expected 20,000 mini-vans
this year to 150,000 units by 2008.
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