GENERAL Motors Corp's minivan venture in China plans to increase its production capacity and launch a new brand to help it strengthen its passenger car business.

The expansion of SAIC-GM-Wuling Motor Co will boost GM's business in China, which plays a key role in the United States auto maker's global recovery.

Under its first blueprint for the passenger car business, the SAIC-GM-Wuling venture yesterday said it will raise the output of its Liuzhou plant by 33 percent to 800,000 units per year by the second half of 2012.

The venture will soon also expand its Qingdao plant to lift its capacity from its current 300,000 units to 510,000 units.

Yang Jie, general manager of SAIC-GM-Wuling Sales Co, said passenger cars will grow to become one of its three core businesses this year, which also include minivans and overseas expansion.

A new passenger car brand will soon be unveiled to help the firm drive into a higher market segment.

The venture is a three-party collaboration between GM, SAIC Motor Corp and Wuling Motors, which is owned by the Guangxi Zhuang Autonomous Region government. It makes Wuling brand mini-trucks, minivans and the Chevrolet Spark mini car.

The venture sold 1.06 million units last year, an increase from the previous year by 66 percent, contributing more than half of GM's total sales of 1.83 million units in China. It is the first Chinese auto maker to achieve annual sales of 1 million units.

SAIC-GM-Wuling exports to Brazil with models sold under GM's Chevrolet brand. It will also make cars in India under a GM plan to expand in the market with SAIC.

GM is also talking with the Guangxi regional government to raise its stake in the venture to 44 percent, with SAIC controlling 50.1 percent and Wuling Motors owning 5.9 percent.

Editor: Yan Fei

Source: Xinhua