The investment of GM auto in China will reach 14 billion USD before 2018, aiming to compete with Volkswagen

During first 11 months of 2014, the total sales volume of GM auto in China is 3.183 million, increasing by only 10% on year-on-year basis which is 1.4% less than last year.

Although the sales volume declines in short time, GM auto is confident to increase the investment in China. On December 5th, Dan Ammann, who is GM president for less than one year, said in the headquarter of Shanghai GM in Jinqiao, China is one of most important markets for GM and there will be investment of 14 billion USD totally in China during 2014 to 2018 and over 60 new models, among which 9 models are SUV. At the same time, 5 factories of GM in China will be put into production and total capacity will reach 5 million.

The investment plan of GM auto could be regarded as a method to compete with its biggest competitor, Volkswagen. In 2012, Hazmann, the principle of Volkswagen in China, said the capacity of Volkswagen in China would increase from 2.2 million to 4 million, nearly doubled.

In China, the biggest gap between GM and Volkswagen is luxury car so the key point for GM is Cadillac. In July, GM auto poached Johan de Nysschen to be the president for Cadillac and vice president of GM auto. GM auto also prepares to release more models of Cadillac to make China to be one of biggest markets for Cadillac.