General Motors China and state-owned automaker FAW Group Corp launched a USD 293 million joint venture today to make light-duty trucks and vans,initially for the fast-growing Chinese market. GM said the joint venture will use two existing factories affiliated with FAW and have a capacity of over 100,000 vehicles. That is expected to double by the end of 2010,GM China Group President Kevin Wale told reporters in a conference call. Plans call for building a new assembly plant in Harbin,he said. China is a key growth market for GM,which is expanding here despite its difficulties in the US market. "Light trucks and vans have a significant role in China and other parts of the world," Wale said. "Adding trucks rounds out our vehicle portfolio in China. It's really a key focus for future growth." The 50-50 joint venture,based in the northeastern Chinese city of Changchun,where FAW is also based,will make FAW-branded vehicles for the Chinese market,GM said in a statement. The venture might make GM-branded vehicles for export later,but the focus for now is on meeting demand in China,Wale said.
