GM to invest $1bn in China plant


GM and its Chinese partners will spend 6.6bn yuan setting up factories in southwest China.

The local government of Chongqing has announced US car giant General Motors will spend $1 billion (6.6 billion yuan) to build a new plant in the south-western municipality. When the factory comes online in 2015, the new production lines will generate 400,000 engines and 400,000 cars.

Construction of the plant is expected to begin some time in 2013, according to local government officials. SGMW already has two existing plants in China, one in Qingdao and the other in Liuzhou, with the organisation recording increased sales to 1.21 million units in the first ten months of 2012.