GM Set to Expand China Operations

Posted April 23rd, 2012 at 9:50 am (UTC-5)
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The world's largest automaker, U.S.-based General Motors, says it is expanding its sales and manufacturing operations in China to try to capture a bigger market share in the most populous country.

GM chief executive Dan Akerson said Monday at the Beijing auto show that the company would add 600 dealerships in China this year to the 2,900 it already has. At the same time, GM plans to boost its production in China to 5 million cars a year by 2016, nearly double the number of vehicles the company and its Chinese partners sold there last year.

GM is among several international automakers that are expanding in China, where sales are expected to grow sharply in the coming years. More than 18 million vehicles were sold there last year, but sales of more than 30 million are forecast by 2020.

The second biggest U.S. automaker, Ford Motor Corporation, said in recent days that it plans to start building two new manufacturing plants in China in the coming months after recently opening a third facility.