GM to Invest Over $3 Billion in China

[PontiacJ8]

DETROIT (AP) -- General Motors Corp. plans to invest more than $3 billion in China over the next three years with the introduction of new vehicles and powertrains, the building of new facilities and expansion of manufacturing and a new financing joint venture, the automaker announced Sunday.

The new investment will be funded by profits from GM's China joint ventures, and the company said it is expected to open up jobs and business opportunities in North America and China.

"GM remains highly confident in the long-term prospect of the China market. With the world's fastest-growing vehicle market, success in China is crucial to GM's global success," said Phil Murtaugh, chairman and chief executive of General Motors China Group.

The world's No. 1 automaker and its Chinese partners plan to introduce nearly 20 new and upgraded products, including luxury vehicles, in the next three years, most made in China. Among those will be several Cadillac models, which will be made at Shanghai GM and imported from North America.

GM and Chinese partner Shanghai Automotive Industry Corp. Group plan to build an advanced prototype lab to test noise, vibration and harshness, as well as a kinetics and compliance lab.

The company said it also will more than double its vehicle assembly capacity in China, to 1.3 million units by 2007.

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