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SAIC-GM-Wuling Confirm Factory in Indonesia
China venture SAIC-GM-Wuling Automotive Co. confirms it will begin construction this year of a new assembly plant outside Jakarta, Indonesia.
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China venture SAIC-GM-Wuling Automotive Co. confirms it will begin construction this year of a new assembly plant outside Jakarta, Indonesia.
Local media report cite Indonesia's minister for industry saying the facility will cost $700 million and have capacity to make 150,000 vehicles per year when it opens in 2017.
Local media reports speculate the plant's first model will be a variant of the popular Wuling Sunshine minivan, which sells for about 30,000 yuan ($4,800) in China.
SAIC-GM-Wuling declines to verify those numbers. But the venture does say the factory will be used to make vehicles primarily for the Indonesian market. It adds that the facility may eventually export to other parts of southeast Asia.
London's Financial Times notes that expanding beyond the Chinese domestic market is the next stage in the evolution of the country's auto industry. The move also signals a direct challenge to the regional market dominance of Japanese brands.
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