GM to Export More Cars Made in China, But Buy Less Parts

From Asiaport Daily News

SHANGHAI — General Motors Corp. (GM) plans to adjust its operational strategy in China, including increasing the export of cars manufactured in its China-based factories, GM executives said in an interview.

The adjustment also involves restricting auto parts purchases in China and buying more shares of SAIC-GM-Wuling Automobile Co., Ltd., a joint venture of Shanghai Automotive Industry (Group) Company, General Motors and Wuling Automobile Co., Ltd.

There is no timetable for increasing export, says Kevin Wale, president of GM China, suggesting that Cadillac SLS, the lengthened version of the STS luxury sedan, will be exported to areas beyond China and the Middle East.

As for buying more shares in SAIC-GM-Wuling, the deal relies on the decision of the government of Guangxi Autonomous Region, says Sun Shaoli, deputy general manager of the venture. No details were disclosed.

As the labor and logistics cost in China is rising, fewer categories of auto parts will be exported from the country, said Nick Reilly, president of the Asia Pacific Region of the carmaker.