Beleaguered General Motors is looking to China to help boost its bottom line.
GM, the financially beleaguered U.S. car company just emerged from bankruptcy, may be struggling at home, but it is growing part of its business model in a joint venture with Chinese automaker FAW. The nearly $300 million deal will expand GM’s production in China, where it sold more than 800,000 vehicles in the first six months of 2009.
General Motors has signed up to a 2bn yuan ($293m; £180m) joint venture with the Chinese state-owned carmaker FAW to make light trucks and vans.
The vehicles will initially be sold in China under the FAW brand, but could in future be exported under the GM brand.
They will be produced at existing FAW facilities in the cities of Changchun and Harbin.
GM sold 818,442 vehicles in China in the first six months of 2009, compared with 1,094,561 in the whole of 2008.