The three way tie up between SAIC GM and Wuling announced the opening of a new factory earlier today to improve capacity in the Chinese market.

The first car to roll off the production line at the new facility in Liuzhou, Guangxi Province, was the flagship Baojun 630 sedan. The sedan was developed by the group and part of a new strategy to target consumers in third and fourth tier cities who appreciate the mixture of Chinese branding and foreign technology. The investment for the first phase of the plant is set to be 8 billion RMB. The 2 million-square-meter production center has an annual manufacturing capacity of 400,000 units and has also adopted GM’s Global Manufacturing System and other world-class systems and processes.

SGMW has recorded many achievements in the space of 10 years,” said Bob Socia, President, GM China, and Chief Country Operations Officer, China, India and ASEAN. “It has set a global benchmark for low-cost, high-value manufacturing. Its new facility will help ensure its continued growth in the world’s largest vehicle market.”

“The passenger car production base represents the latest milestone for our joint venture,” added SGMW President Shen Yang. “It will lay a solid foundation for the expansion of SGMW’s important passenger car business.”