Shanghai GM to Spend $16B USD on New Products Over Five Years
Shanghai GM announced this weekend that it intends to spend $16 billion USD over the course of five years toward the goal of developing new vehicles for the Chinese market.
According to a report from Reuters, the money will be put toward manufacturing 10 new or significantly upgraded models a year until it has 40 product lines in the country. Think about that for just a second: 10 new models a year, 40 complete product lines.
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“Our five-year business plan to 2020 will have 100 billion yuan invested in new products and plants to make sure that we meet the China consumers’ needs,” said John Stadwick, vice president of sales, service and marketing, Shanghai GM.
Of the investment, about $4.3 billion will be dedicated to more environmentally-friendly products, including as many as 10 “new-energy models”—i.e. hybrid, plug-in hybrid, and battery-electric vehicles.
In announcing the expansion plans, Shanghai GM President Wang Yongqing also stated that the Buick and Chevrolet brands will surpass 1 million annual sales in China by 2020. For the purposes of comparison, Buick sold 919,582 vehicles in China in 2014, and Chevrolet sold 717,007 units in China in 2014.
It was also noted that Shanghai GM has upwards of 13 engines and nine transmissions “in the pipeline.” These products are expected to improve the overall fuel economy of Shanghai GM’s vehicles by as much as 25% to 30%.
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News Sources: Reuters, The Wall Street Journal