GM and FAW form joint venture

General Motors (GM) is forming a 50-50 joint venture with China FAW Group to make light vans and trucks for the China market, Bloomberg reported. According to GM, the JV, called FAW-GM Light Duty Commercial Vehicle, has a total investment of US$293 million. The two companies had already signed a memorandum of understanding on the deal in November 2007 and received government approval in July. The deal is the third JV for GM in China. The company will manufacture vehicles at FAW factories in the northern city of Harbin and in Yunnan province. The two factories have a total capacity of 100,000 units. A third factory in Harbin is currently under construction and will add another 100,000 units of capacity by the end of next year. The venture aims to sell between 80,000 and 90,000 vehicles this year, 100,000 next year and will export overseas if demand warrants it. Total auto sales in China, including trucks and buses, rose 23% this year through July, as the country surpassed the US to become the world’s largest auto market.