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article imageGeneral Motors establishes relationship with China

By Jane Fazackarley     Aug 30, 2009 in Business
It has been announced that General Motors have joined forces with Chinese car maker FAW, a company owned by the state. The joint venture is worth £180 million or $293m and the companies will be making vans and light trucks.
To begin with the new models will be sold to the Chinese market and branded with the FAW name. There is a possibility at some stage in the future the cars will be available for export and sold under the General Motors brand.
The FAW factories already established in Changchun and Harbin will be responsible for the production of the vehicles.
The GM name has seen a strong increase in sales in China recently selling 818,442 up until the end of June this year. The minivans and small models have been the most popular.
General Motors may be seeing its fortunes start to improve with it coming out of bankruptcy protection in the States and whilst its sales continue to fall in the Wes, the China market is offering a good opportunity for the company to see sales grow.
Kevin Vale, managing director for GM in China said to the BBC:
"For us in China, this is an important complement to the rest of our portfolio,"
"We are well established in passenger vehicles and mini commercial vehicles and we haven't had a presence in the truck segment."
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