General Motors and its Chinese partners expect to invest $11 billion in China between now at the end of 2016 as part of an ambitious expansion plan in what is now GM’s second-largest global market.
GM Chairman and Chief Executive Officer Dan Akerson told analysts during a meeting at the maker’s Milford Proving Grounds that the company is financially strong enough to maintain a steady investment cadence in the years to come. The planned investment includes spending more than $11 billion in China over the next three-and-a-half years.
GM isn’t the only maker upping its investment in China, now the world’s largest national automotive market. During a visit to China, Ford Motor Co. CEO Alan Mulally announced the maker will double the size of its Changan Ford Engine Plant near Chongqing. The $500 million investment will bring capacity to 400,000 powerplants annually.
“This kind of expansion is nearly unprecedented, and it really reflects the level of commitment we have to this region,” said Mulally.