Space Industry and Business News  
Troubled automaker GM opens new plant in China

The Chevrolet Cruze.
by Staff Writers
Beijing (AFP) Dec 17, 2008
Beleaguered auto giant General Motors opened a new joint venture factory in northeast China Wednesday, as it sharply cut back capacity in the United States due to the rapid economic downturn.

The joint venture plant in Shenyang city, inaugurated as the iconic American brand is fighting for its life amidst the global crisis, will mass produce the compact Chevrolet Cruze from the second quarter of 2009.

"The opening of this plant is part of GM's ongoing pledge to grow our operations in China," said Kevin Wale, president of the GM China Group, in a statement.

The plant, capable of producing 150,000 vehicles a year, will lead to at least a 10 percent increase in GM's total China-based capacity, which it said was "over a million units".

It will be operated by General Motors China and its joint venture partners Shanghai Automotive Industry Corp. Group and Shanghai GM.

The joint venture plant is the second for GM in Shenyang. The first plant makes the Buick GL8 and the Buick FirstLand executive wagons and boasts an annual capacity of 50,000 vehicles.

The new opening comes after GM said Friday it was idling 30 percent of its North American production "in response to rapidly deteriorating market conditions."

The auto giant, which has been pleading for an emergency US government loan to avert collapse, said the action comes in response to a sharp industrywide drop in November vehicle sales, including a 41-percent drop for GM.

Despite the troubles in the United States, the China market has remained profitable for the automaker. It was the market leader here until last year when it was overtaken by Volkswagen in sales.

China's auto sales fell 14.6 percent year on year in November, according to industry association figures, as consumer confidence showed further signs of weakening amid the economic slowdown.

Automakers sold 685,100 units in China in November, down 4.3 percent from the previous month, the China Association of Automobile Manufacturers said in a recent statement.

China's auto sales rose 8.4 percent on-year in October when car makers offered big discounts after two consecutive months of single digit declines in August and September.

"In a developing market in China, some volatility is to be expected and we've had some impact from the global financial crisis. So the market is finally down," Henry Wong, GM's Shanghai-based spokesman, told AFP Wednesday.

"But over the long term, GM and the partners here are quite optimistic about the market. It still has great potential."

GM said last month it was "very profitable" in China, and that it was continuing its investment here.

The joint venture's main plant in China is in Shanghai.

Wong said Wednesday it was unlikely that GM would be criticised for opening a new plant in China while closing down capacity at home.

"I don't know if anybody would criticise us for that because this market is growing," Wong said.

"China is a very important growth market for General Motors. Therefore we have to stay with our game plan here."

Related Links
Car Technology at SpaceMart.com



Memory Foam Mattress Review
Newsletters :: SpaceDaily :: SpaceWar :: TerraDaily :: Energy Daily
XML Feeds :: Space News :: Earth News :: War News :: Solar Energy News


China regrets WTO decision on auto parts
Beijing (AFP) Dec 16, 2008
China expressed regret Tuesday over a World Trade Organisation ruling that its tariffs on imported car parts were not in line with global rules, and refrained from saying it would comply.







  • Mumbai attacks caps year for citizen journalism: NowPublic
  • About 90 percent of all email is spam: Cisco
  • Google reaffirms commitment to net neutrality
  • Yahoo layoffs underway as investor calls for Microsoft deal

  • Arianespace's Sixth Ariane 5 Of 2008 Completes Assembly
  • China Launches Yaogan V Remote-Sensing Satellite
  • W2M Satellite To Be Launched On December 20
  • ILS Proton Successfully Launches Ciel II Satellite

  • Britain's environment minister concerned by Heathrow plan
  • Climate protesters cause chaos at British airport
  • Thompson Files: Protect U.S. aerospace
  • NASA studies pilot cognition

  • Boeing Develops Common Software To Reduce Risk For TSAT
  • USAF Tests Battlespace Information Solution On AC-130 Gunship
  • Harris Awarded Contract For USAF Satellite Control Network Program
  • LockMart Delivers Key Hardware For US Navy's Mobile User Objective System

  • Eliminating Space Debris - The Quest Continues
  • HP offering aims at penny-pinching IT departments
  • First Muslim-friendly virtual world goes online
  • Computer industry celebrates 40 years

  • Berndt Feuerbacher New President Of IAU
  • Orbital Appoints Frank Culbertson And Mark Pieczynski To Management
  • Chris Smith Named Director Of Cerro Tololo Inter-American Observatory
  • AsiaSat Appoints New General Manager China

  • Jason-2 Satellite Data Now Available To Scientists
  • Fine-Scale Terrain Detail Of Australia
  • Vietnam To Launch First Remote Sensing Satellite By 2012
  • Seafood Industry To Benefit From Oceansat-2

  • Navevo Launches Next Gen Sat-Nav For HGV And Van Drivers
  • Stolen Truck Recovered Same Day With Aid Of GPS Device
  • Catchnet - Putting Internet Services In The Hands Of The Consumer
  • Intermap Technologies Expands AccuTerra GPS Map Product Line Into Western Europe

  • The content herein, unless otherwise known to be public domain, are Copyright Space.TV Corporation. AFP and UPI Wire Stories are copyright Agence France-Presse and United Press International. ESA Portal Reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space.TV Corp on any Web page published or hosted by Space.TV Corp. Privacy Statement