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Automotive parts industry

General Motors Invests in China's Automotive Sector

Strategic Insights

— 1 min read

General Motors Corporation has announced plans to invest $50 million in Delphi Automotive Systems' unit to establish a manufacturing facility in China for steering systems and chassis components. The operations are expected to begin in 1999, producing 500,000 steering systems annually for original equipment manufacturer (OEM) customers. This move demonstrates GM's commitment to the Chinese market and the automotive industry, with a focus on developing the supplier base and manufacturing infrastructure. Delphi, a global leader in automotive suppliers, has already established five joint ventures and five licensing agreements with Chinese suppliers, covering various automotive components and systems.

Key Takeaways:

  • General Motors plans to invest $50 million in a manufacturing facility for steering systems and chassis components in China.
  • The operations are expected to begin in 1999, producing 500,000 steering systems annually for OEM customers.
  • The facility will be Delphi's first wholly-owned manufacturing facility in China, subject to final negotiation of definitive agreements and corporate and government approvals.
  • Delphi has five joint ventures and five licensing agreements with Chinese suppliers, covering a wide range of automotive components and systems.
  • The steering systems/chassis components project aligns with GM's long-term strategy for China, aiming to develop a robust supplier base and manufacturing infrastructure.
  • General Motors has operations in 53 countries worldwide, employing more than 680,000 people, and Delphi has 191 operations and 36 joint ventures in 34 countries, with 174,000 employees.

Statistics:

  • $50 million: Planned investment by General Motors in the Delphi facility.
  • 1999: Expected start date of operations at the new facility.
  • 500,000: Number of steering systems to be produced annually by the facility.
  • 53: Number of countries where General Motors operates worldwide.
  • 680,000: Number of General Motors employees worldwide.
  • US$26.1 billion: Sales by Delphi in 1994.
  • 191: Number of Delphi operations worldwide.
  • 36: Number of Delphi joint ventures worldwide.
  • 174,000: Number of Delphi employees worldwide.

Sources:

  • "General Motors Corporation" (NYSE: GM)
  • "Delphi Automotive Systems"
  • Karen Cullen, Delphi Automotive Systems, 810-857-4410
  • Patricia Hawkins, GM China, 86-10-512-3617

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