Manufacturing News

Shanghai GM approved to sell new Chevy-badged small car

Shanghai General Motors Corp. has won approval from the Chinese government to build and sell a newly developed small car under the Chevrolet brand in China.

Automakers operating in China have to obtain the approval of China's Ministry of Industry and Information Technology before they can start production and sale of new motor vehicles.

According to an announcement the Ministry posted on its Web site last week, Shanghai GM Dongyue Motors Co. will be allowed to produce and sell two products coded SGM7120 and SGM7142 under the Chevrolet brand in China.

Shanghai GM Dongyue Motors Co. is Shanghai GM's subsidiary located in Yantai of east China's Shandong province.

The ministry does not provide further details of the products. But supplier sources say the two products are the 1.2-liter version and 1.4-liter version of a small gasoline model built on the platform of the Chevrolet Lova small car.

The new model was developed by Pan Asia Technical Automotive Center (PATAC), an r&d center jointly run by GM and Shanghai Automotive Industry Corp., supplier sources say.

Earlier this year, Shanghai GM said in a press release that a new car is due out sometime in the second half of this year and will target the mass market. It stopped short of giving further information on the car.

But supplier sources say the car will be sold in China and other emerging markets including the Middle East at a cheaper price than the Chevrolet Lova.

In China, the Lova has a starting price of 71,900 yuan ($10,527).

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