GM China and SAIC Motor Corp opened a new US$360 million plant in Shenyang on Wednesday, but do not plan further expansion in the near future, Bloomberg reported. The new factory will be able to produce 150,000 cars per year. The plant will begin full production of Cheverolet Cruze compact cars in the second quarter of next year. A GM spokesman said that GM is building long-term capacity capacity in anticipation of an economic recovery, and expects a single digit increase in industry-wide sales in 2009. The spokesman also said that GM has no plans to reduce its headcount in China. GM’s total manufacturing capacity in China is 1 million vehicles per year. The firm’s China-made vehicle sales rose by 8.1% in the first 10 months of 2008 while its US sales dropped by 20%. The company plans to release 10 new models in China by 2011.
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