GM’s China venture to spend $16B by 2020 to win sales
Shanghai — General Motors Co.’s joint venture with SAIC Motor Corp. in China plans to spend $16 billion by 2020 as global automakers step up investment to compete for market share in the world’s largest car market.
Shanghai GM targets to have a market share of more than 10 percent in five years, Wang Yongqing, president of the venture, said in Shanghai on Sunday ahead of the city’s auto show this week. The carmaker plans to introduce more than 10 new-energy models and seeks to sell 1 million units each of its Chevrolet and Buick brands, he said.
Foreign automakers have been among the most enthusiastic factory builders in China, with Volkswagen AG and Hyundai Motor Co. among those that have announced plans or are already building in the country. Toyota Motor Corp. ended its self- imposed ban on new plants last week with plans to invest about $441 million to augment annual production in China, while Ford Motor Co. has committed to spend $4.9 billion on new plants and models through this year.
The expansion is taking place even as passenger-vehicle sales rose at a slower pace in China last year, as economic growth moderated and more cities imposed purchase restrictions.
China still represents a significant growth potential for GM, Chief Executive Officer Mary Barra said at the same event, held at a Cadillac plant.