GM to invest 7 billion RMB in expanding capacity at Shenyang Factory

---

GM’s Bei Sheng plant in Shenyang City, Liaoning Province, is about to gain from a 7 billion RMB upgrade over the next few years. The factory expansion will take GM’s production capacity to a new high in China.

GM’s plans for the factory expansion have already been approved by the Ministry of Environment and will see the factory’s capacity increased to 300,000 vehicles per year and 450,000 engines. The BeiSheng Factory was established in 2004 and was responsbile for producing the Buick GL8 and in 2008 the Cruze was added to the production lines which currently max out at a maximum of 200,000 units per year.

Shanghai GM’s China sales reached a new high of 612,072 vehicles in the first half of 2012 which included over 12,000 vehicles that were exported and shows that despite the market slow down GM are still able to push out and stay on top with a 27.5% sales increase on year on year figures.

Chevrolet are set to benefit the most from the expansion with an increased model line up in the Chinese market which has seemingly expanded from nothing over the past few years and has certainly struck a chord with Chinese consumers. Chevrolet’s June sales figures stood at 47,610 units which was a 42% increase over June 2010′s figures, whilst first half of 2011 sales figures stood at 273,000 units – an increase of 25% over first half 2010. The Chevrolet Cruze, which is produced at the Bei Sheng factory, has been one of Shanghai-GM’s biggest sellers with demand often outstripping the supply, the same can be found at Shanghai-GM’s Yantai engine factory where produts cannot be made and shipped fast enough.

Shanghai-GM’s goal in the Chinese market is to catch up with VW’s production capacity, which will reach 3 million units per year once the Foshan factory comes online.