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GM confirms Indonesia factory plan with China's SAIC Motor

Monday, February 2, 2015 - 12:31

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General Motors said on Monday that one of its Chinese ventures plans to establish manufacturing operations in Indonesia to take advantage of growth in Southeast Asia's biggest vehicle market.

[SHANGHAI] General Motors said on Monday that one of its Chinese ventures plans to establish manufacturing operations in Indonesia to take advantage of growth in Southeast Asia's biggest vehicle market.

Confirming a Reuters report published on Saturday, the US carmaker said SAIC-GM-Wuling (SGMW), a joint venture between GM China, SAIC Motor Corp Ltd and Wuling Motors, is planning to establish a manufacturing facility near Jakarta to build Wuling brand vehicles.

Construction of the facility is planned to begin this year, subject to government approval, GM said in a statement posted on its website.

The vehicles will be sold primarily in Indonesia, with plans to potentially export them to other regional markets, it said.

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Sources told Reuters that GM and SAIC would make a joint push into Indonesia, using their no-frills Wuling brand to establish a beachhead in Southeast Asia's biggest market and from there tackle other markets in the region.

In a report late on Friday, officials from Indonesia's industry ministry told state Antara news agency that GM and SAIC would invest US$700 million in Indonesia to build vehicles.

The GM statement did not provide the size of the planned investment.

An official at Wuling confirmed the venture's plan to build a factory in Indonesia. SAIC could not be reached for comment.

REUTERS

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