GM Completes Expansion of SAIC-GM-Wuling Plant

General Motors Chairman and CEO Dan Akerson attends ceremonies in China marking completion of the expansion of a major GM manufacturing facility.

The SAIC-GM-Wuling plant in Qingdao, Shandong province, builds the new Baojun 630 midsize sedan and Chevrolet-branded Le Chi minicar.

Akerson (left), G.M. China Group President Kevin Wale attend celebration at Qingdao facility.

The RMB 1.1 billion ($173 million) expansion increases production capacity by 70% to 510,000 vehicles annually.

“The Qingdao plant is one of GM’s biggest vehicle production facilities anywhere in the world,” Akerson says.

“Of all our facilities, this plant stands out as a global GM benchmark for low-cost manufacturing, throughput and innovation. “The vehicles produced here have helped make GM the global industry leader in China for six straight years.”

The Qingdao plant has built 1.3 million vehicles and 860,000 engines since it opened in 2005.

It also produces the popular Wuling Rong Guang and Xingwang minivans and Wuling PN-Series small pickups.

The facility has built more than 850,000 Wuling Rong Guang units since the minivan’s introduction in 2008, making it the fastest-growing vehicle in China, according to GM China Group.

The auto maker sells small commercial vehicles produced at Qingdao in select overseas markets.

“Our Qingdao plant is giving us a strong presence in the northern China market while supporting the overall growth of SGMW,” General Manager Shen Yang says.

“We will continue to concentrate our resources at this important facility, including expanding its product mix and increasing the localization of parts and components used in its products.”

On Oct. 14, SGMW became the first Chinese auto maker to sell 1 million vehicles in China markets in 2011. SGMW had record sales of 1,226,860 vehicles in 2010.