US car giant General Motors Co. (GM) has revealed plans to invest US$12 billion in China over the next four years after its president paid a visit to Beijing and vowed to help develop the country’s auto industry.
In a meeting with Miao Wei, Minister of Industry and Information Technology, on Friday, GM president Dan Ammann pledged to work with China in finding solutions to the country’s energy and environmental problems, and contribute to the development of the world’s largest auto market, according to a statement posted on the MIIT website on Monday.
On Sunday, GM announced in a car show that it will invest US$12 billion in China from 2014 to 2017 and plans to build five plants across the country next year, as part of its efforts to ramp up manufacturing capacity by 65 percent by 2020, Reuters reported, citing China president Matt Tsien.
GM expects its China sales to expand 8-10 percent this year, in line with the overall growth of the Chinese auto market, Tsien told the news agency.
He said the company plans to introduce 11 new or reconfigurated sport-utility vehicle (SUV) models in China until 2017 in a bid to catch up with market leader Volkswagen.
SUV sales in the country by all suppliers are expected to reach seven million units by 2020, Tsien said. This is based on industry estimates that by that year, about two-thirds of car owners in the country who want to upgrade their vehicles will choose SUVs and multi-purpose vehicles (MPVs), compared with the current level of one-third, he added.
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