American automaker General Motors (GM) will expand its presence in China with investments of $12bn between 2014 and 2017 through its domestic joint ventures.
The investments will be used to open five new manufacturing facilities by late 2015, four vehicle assembly plants as well as a powertrain plant, while further expanding the facility between 2014 and 2020.
With the move, GM's manufacturing capacity in China is claimed to increase by 65% that includes launch of over 60 new and upgraded vehicles by 2018.
GM China president Matt Tsien said China is a dynamic market that's changing rapidly, and the company is moving ahead to keep up with it.
"GM is focused on moving full speed ahead by strengthening all key areas of our business," Tsien added.
Under the plan, the manufacturer aims at meeting the growing demand for luxury vehicles, SUVs, multi-purpose vehicles (MPVs) and smaller passenger cars.
According to the company, the luxury vehicles are expected to contribute to about 10% auto sales by 2020, SUV market would reach 7 million units by 2020, while MPV and compact sedans are also expected to increase sales for the period.
Underlining the forecast, the company plans to launch new Cadillac model every year through 2016, add 11 new SUVs by 2018 and also launch Buick Excelle family, Chevrolet Cruze and Baojun 630.
Additionally, GM in association with its Pan Asia Technical Center (PATAC) joint venture plans to open a new facility in Shanghai in 2015 and the GM China Advanced Technical Center in Shanghai.
Image: GM China president Matt Tsien announcing the plan. Photo: Courtesy of General Motors.
