General Motors (GM.NYSE) announced it would invest US$12 billion in China between 2014 and 2017, an attempt to grab market supremacy back from Volkswagon (VOW.ETR), Reuters reported. VW eclipsed GM last year to become the top-selling foreign brand in China. GM plans to build five more plants in China next year as part of its efforts to ramp up manufacturing capacity there by 65% by 2020. Looking away from China’s coastal provinces, Volkswagen also said it would invest billions to increase the number of dealerships in China’s central and western provinces. VW said vehicle density in China’s smaller cities offers lucrative growth prospects.
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