Detroit (US), Nov 13: The top two US automakers announced plans to export thousands of vehicles to China as that country moves to open up its market to foreign competition. General Motors Corp. and the Ford Motor Co. announced they had signed agreements with their joint venture partners in China to export vehicles between now and 2006.
GM said it would export more than 5,000 of its luxury Cadillac and Buick models in 2004 and 2005, both through its China-based subsidiary, GM China, and independent Chinese importers.
Thousands more units will be assembled in China by GM's joint venture partners using components and kits made in the United States. The deals have a combined value of USD 1.3 billion.
"As vehicle ownership grows in china, the luxury segment is beginning to open up," GM chief executive officer Rick Wagoner said in a statement.
"We at GM believe that now is the right time for US to introduce our Cadillac luxury brand to China. Today's comprehensive agreement also indicates the seriousness of our intention to be a major player in China."
The automaker has not decided what brands, or mix of brands, it will supply, but it is "leaning towards sport utility vehicles," said Ford spokesman Chris Vinyard.
Bureau Report