GM eyes bigger role in Shanghai

GM eyes bigger role in Shanghai

SHANGHAI: General Motors said on Wednesday it will move its Asian headquarters to Shanghai from Singapore and invest US$250 million in a testing center to ramp up its presence in the world's fastest growing auto market.

GM chairman and chief executive Rick Wagoner said expansion of the Pan Asia Technical Automotive Center was part of a previously announced $3 billion investment plan in China with its joint venture partners over the next three years.

The long-expected announcement of the move to Shanghai, by January 2005, reflects the growing importance of the China market, where GM saw sales climb nearly 70 percent in the first quarter of this year to 122,097 vehicles.

"Having a strong presence in this dynamic and growing market is not an option anymore, it's a necessity," Wagoner told reporters. -- AFP