GM, Volkswagen, Renault pledge new China investments

Several Western automakers announced new investments and partnerships in China to coincide with the Beijing Auto Show being held this week. General Motors (GM.NYSE, GMM.U.TSE) announced plans to expand its dealership network in China by 20%, adding 600 dealerships to its existing 2,900. The combined 3,500 dealerships would begin to rival its 4,400-strong US dealership network. Volkswagen (VOW.FRA) said that it would invest EUR170 million (US$225 million) in the western Chinese city of Urumqi to erect a new production facility capable of building 50,000 vehicles each year beginning 2015. French automaker Renault (RNO.Euronext) announced that it had signed a memorandum of understanding with Dongfeng Automobile (0489.HKG) to produce cars in China. The firm said that it expects to complete a full agreement with the Chinese firm this year and begin operations in 2013-2016.