GM plans to add four more plants in China

SHANGHAI (Reuters) -- General Motors Co. plans to add four new plants in the next three years in China to bring its production capacity to 5 million vehicles a year, the head of GM China said at the Shanghai auto show.Bob Socia, head of GM China, said on Saturday that the company and its joint venture partners will invest $11 billion in China by 2016, but did not break out the cost of the new plants.The new plants will boost GM's manufacturing capacity by 30 percent and create 6,000 jobs, the company said.GM also plans 17 new or refreshed models in China this year.The company is adding another 400 dealers in China this year, which will bring its dealership network to 4,200 stores. By 2015, GM said it expects to have about 5,100 dealers in China."We are at an important point in our history and the industry's history in China," Socia said in a statement. "Last year, the vehicle market reached a record 19.4 million units. We expect industry sales to grow another 7-8 percent in 2013."No overcapacity riskSocia said auto executives and industry insiders often talk of the danger of production overcapacity but that is not the case at GM. Its plants are running near maximum capacity, he said."We're confident about playing here in China," Socia told reporters. "We're here for the long term."When GM plant capacity increases to 5 million in 2015, the company will export about 300,000 vehicles, Socia said, up from over 100,000 GM expects to export this year.Socia said there is a chance that GM will export vehicles to the United States from China, but he did not reveal any plans."That could very well happen," Socia said of the chance that exports to the U.S. market may occur.Philip Nussel of Automotive News contributed to this report. PRESS RELEASE: General Motors Announces Future Plans in China Focused on products, plants and people

GM plans to add four more plants in China

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