Doing Business in China

GM established 2 billion yuan joint venture car maker with China FAW.Adding a new vehicle segment to its portfolio in the world's fastest-growing auto market. The joint venture, FAW-GM Light Duty Commercial Vehicle Co. will make FAW-branded light-duty trucks and vans, GM said in a statement. It will also engage in research and development, exports and after-sales support.

The new joint venture is an important complement to GM's product line-up in China, said Kevin Wale, president and managing director of GM China Group. China accounts for 50% of global light truck sales and is a "key focus" for GM, he said.

"It's a large country, it's got a lot of people and there's lots of small trading going on," Mr. Wale said.

The total investment in the joint venture is 2 billion yuan and it has a registered capital of 1.2 billion yuan, the company said.

GM also makes passenger vehicles in China with SAIC Motor Corp. and minivans with SAIC and Wuling Automobile Co.

FAW is China's second-largest car maker by sales volume. It also operates vehicle-making joint ventures in China with Volkswagen AG and Toyota Motor Corp.

GM and FAW began discussions on the joint venture in January 2007. They signed a memorandum of understanding in November 2007 and signed a joint venture contract the next month. In July 2009, the joint venture received approval from China's central government, GM said.