GM opens engine plant in China

General Motors Corp. inaugurated a new engine plant at its minicar factory, SAIC-GM-Wuling Automobile Co., in southern China today. The $263-million plant, adjacent to the factory in Liuzhou, will have a capacity of 300,000 units a year and begin production of 1.1-liter and 1.2-liter engines in August, GM said in a statement. The new plant will facilitate new product development at the minicar factory, which now buys engines and related parts from outside suppliers, the company said.

The engines will be used first in a new minivan model, the Wuling Hong Tu, a vehicle developed by GM’s Pan Asia Technical Automotive Center joint venture in Shanghai with SAIC.

SAIC-GM-Wuling Automobile Co. is a three-way commercial vehicle joint venture between GM, Shanghai-based partner SAIC Motor Corp., and Guangxi province-based Wuling Automobile Co. GM owns 34% of the venture, SAIC has 50.1% and the remainder is held by Wuling Automobile.