At the end of August, SAIC-GM-Wuling Automobile (SGMW, Liuzhou, Guangxi / China; www.sgmw.com.cn/en) started construction on its "New Energy Vehicle (NEV)" project at its plant in Liuzhou, Guangxi province in southern China. The line is part of the second phase of the plant’s construction. At the same time, the joint venture – in which General Motors owns 44% – began manufacturing the first units of its "Baojun 560" SUV at the site.

SGMW is investing a total of CNY 8 bn (about EUR 1.1 bn) in the capacity expansion. Output of the Baojun model will subsequently rise by 400,000 units, while production of engines in general is also set to increase. Of the overall investment, CNY 3 bn alone are earmarked for the construction of the NEV assembly plant, which will be capable of producing about 200,000 electric and hybrid vehicles. The second construction phase of is due to be completed in about one year’s time.

It remains unclear which e-mobile platform will be produced in Liuzhou. Early next year GM will launch its revised plug-in-hybrid Chevrolet "Volt", with a minimally larger, purely electric range, and reportedly available at a slightly cheaper price. GM chief executive Dan Akerson has repeatedly been quoted as saying that the company intends to lower the vehicle’s cost to about USD 10,000 in the medium-term. Reports indicate that sales of the current model have stagnated.

Shanghai Automotive Industry (SAIC, Shanghai / China; www.saicmotor.com) owns a majority stake of 50.1% in SGMW, with Wuling Motors in control of a small 5.9% stake. Founded in 2002, the joint venture turned out 1.5m cars in 2013, mostly of the Baojun type as well as several smaller utility vehicles.