SHANGHAI -- Vehicle sales in China have slowed in the past two years, but Shanghai General Motors Co. is counting on long-term growth as it begins construction of a fourth assembly plant.
GM's joint venture with SAIC Motor Corp. now has combined annual production capacity of 1 million units at its three assembly plants.
The new $1.1 billion plant in the central China city of Wuhan will include stamping, paint and general assembly shops as well as support facilities. Annual capacity will be 300,000 vehicles.
Production in Wuhan is scheduled to start in 2014. The factory will build small and medium-sized cars and SUVs and electric vehicles or hybrids for Buick, Chevrolet and Cadillac.
Last year Shanghai GM sold a record 1,200,355 vehicles in China.
Despite the industry slowdown, 2012 sales through May were up 9 percent to 555,280.
GM's three assembly plants are in Shanghai; Yantai, in east China's Shandong province; and Shenyang in northeast China's Liaoning province.
The three plants have a combined annual production capacity of 1 million units. GM's joint venture aims to increase its total annual output to 2 million vehicles by 2015.