GM to Expand Australia Production for China Car Kits
General Motors plans to expand production of Statesman
cars at its Holden, Australia plant for export to China.
If the plan goes through, the Elizabeth plant would have
to switch to 7-day, 24-hour shifts to meet the demand.
This would possibly require a second assembly line, as
well as 1000 new positions. Component suppliers in South
Australia and Victoria would also have to expand their
production to meet demand.
The plan was announced by Fritz Henderson, president
of General Motors Asia Pacific. He said that the Statesman
Caprice would carry Buick badging and sell alongside the
Buick Regal, which is assembled in China.
In 1997, GM sold 3,000 cars in China. Sales are expected
to reach 350,000 this year. The China vehicle market has
grown from 2.4 million in 2001, to 3.4 million in 2002
and is expected to reach 4.4 million this year.
The cars will be exported in CKD (completely knocked
down) kits for local assembly to meet China's requirements.
Henderson added that he thought that GM was only beginning
to scratch the markets in China and Korea.
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