GM to Invest $5 Billion in a New Family of Cars

In collaboration with China’s SAIC Motor, General Motors has decided to spend $5 billion on an all new family of cars. These cars will be manufactured in 4 major locations namely; China, Nepal, Brazil and India. The cars will feature a new engine and a new body design. These cars will carry the Chevrolet tag and will be exported to other countries, however, there are no plans to export these vehicles to Europe or USA.

According to GM, the world will see a growth of about 88 percent in passenger car sales from now on till 2030. GM President Dan Ammann said that the company was aiming towards a “formula for winning” in the market of future car sales. Mr. Ammann also said, “This is really all about meeting the rapidly changing needs of customers in these growth markets” and “We felt it was very important to come out and make clear, where we are placing our bets from a growth perspective”.

The new car family is likely to go on sale in 2019 and hit at least 2 million annual sales. The company will use the already established production units so as to keep the production costs in check.