Shanghai GM Completes New Plant

Press Release

Doubles Annual Capacity to Accommodate Sales Growth

Shanghai General Motors (Shanghai GM) announced today the completion of its new $249 million plant. The facility, which is adjacent to its original manufacturing facility in Shanghai, more than doubles the annual capacity of the flagship joint venture of General Motors in China to 320,000 vehicles.

“The new plant reinforces Shanghai GM’s industry leadership position by enabling us to keep up with the growing demand for our existing products,” said Chris Gubbey, Executive Vice President of Shanghai GM. “At the same time, it gives us the ability to continue expanding our product lineup in order to capture more opportunities in what is expected to remain the world’s fastest-growing vehicle market.”

Shanghai GM’s new plant consists of three shops – body, paint and general assembly – and occupies a total area of 180,000 square meters. Construction was completed in 20 months, a record for China’s automotive industry.

The initial annual capacity of the new plant, which operates on two shifts and has 941 employees, is 170,000 vehicles. It officially began production of the Buick Excelle lower-medium sedan, Buick Excelle HRV hatchback and Cadillac CTS luxury sedan today.

“As part of the $3 billion in new investments in China announced by GM last June, the new facility demonstrates our confidence in the long-term prospect of the country’s vehicle market and our full commitment to grow aggressively with the market,” said Gubbey.

Shanghai GM currently has one of the largest product and brand portfolios among joint venture automakers in China. Its lineup of Cadillac, Buick and Chevrolet products covers segments ranging from luxury vehicles to small cars. The joint venture between GM and Shanghai Automotive Industry Corp. Group (SAIC) plans to launch an unprecedented number of new products this year.

“Shanghai GM’s new facility is adopting the advanced processes of our much-acclaimed Global Manufacturing System. It is yet another prime example of how we leverage the know-how, resources, and processes that are available within GM, to strengthen not only our own global manufacturing organization, but also the joint ventures we are involved in,” said Gary L. Cowger, GM Group Vice President Global Manufacturing and Labor Relations.

The new plant will have the flexibility to produce a variety of different models on the same line. It has also been designed to be environmentally compatible. Its paint shop, for instance, uses a world-class water-borne paint process that reduces pollution.

“We are very excited that this new facility allows Shanghai GM once again to leverage the expertise of its parent companies for the benefit of the local market,” said Gubbey.

In addition to its two plants in Shanghai, Shanghai GM also manages Shanghai GM Dong Yue Motors Co. Ltd., which is located in Yantai, Shandong, and Shanghai GM (Shenyang) Norsom Motors Co. Ltd., which is located in Shenyang, Liaoning. The combined capacity of these facilities is close to 500,000 vehicles per annum.

During the first four months of this year, Shanghai GM sold 72,876 vehicles. Its sales were the highest of any passenger car makers in China in March and April. In 2004, Shanghai GM sold a record 252,869 vehicles, which represented an increase of 25.7 percent from the previous year.