GM gets environmental approval for $1.1 billion Chinese plant

The assembly facility could have an eventual capacity of 300,000 vehicles.

SHANGHAI, China—General Motors Co. has won approval from environmental authorities in central China for a new $1.1 billion assembly plant.

But the company says it has not yet decided on the plan.

The $1.1 billion vehicle assembly plant would have an eventual annual capacity of 300,000 vehicles, the notice said.

GM’s office in Shanghai has not directly commented on the project, but issued a statement saying the company would make “sustainable plans” for expanding production capacity based on market conditions, sharing details at a later time.

Shanghai GM, a venture with state-owned automaker SAIC, has four vehicle manufacturing plants in China, two of which are currently undergoing expansion.

Sales of GM-branded vehicles by the company and its Chinese partners rose 8.3 per cent in 2011 to a new record of 2.5 million vehicles.