Shanghai Auto rolls out expansion plan with partners GM, Volkswagen

0 Comments | AFP, May, 2005

SHANGHAI (AFP) — Shanghai Automotive Industry (SAIC) said it will aggressively boost its car and engine production capacity despite sharply slowing sales growth in the world's third largest vehicle market.

Following its failed bid to take over bankrupt British carmaker MG Rover, SAIC unveiled a plan that with its partners Volkswagen and General Motors will raise capacity at their two main factories and establish new engine plants.

"At the main SAIC and GM plant, Shanghai GM will add production capacity of 160,000 cars, increasing annual capacity to around 500,000 units," a company spokeswoman told AFP on Friday.

The SAIC and Volkswagen group has also begun to refit its flagship China factory to boost production capacity by 150,000 units from the current...