HONG KONG - General Motors and its local Chinese partners have launched a new plant to make cars for its local discount brand Baojun.
The SAIC-GM-Wuling joint venture opened the factory on Sunday in southwestern Guangxi province. GM and its partners have invested 8 billion yuan ($1.3 billion) in the facility, which will be capable of turning out up to 400,000 vehicles a year.
The first car to roll off the plant's production line was a Baojun 630 midsize sedan, one of two cars sold under the only-in-China badge.
The new factory is a sign GM is ratcheting up its battle for customers at the fast-growing lower end of China's car market, which is the world's biggest. Nissan and Honda have also launched Chinese budget car brands with their local partners.