Chinese manufacturers Great Wall Motors are expected to make a fresh push into the Australian market after signing an agreement to take over General Motors’ (GM) Rayong assembly plant in Thailand.

The deal will see Great Wall move into the facility by the end of 2020, pending government and regulatory approval.

Great Wall have invested significant resources into expanding their brand globally in recent years, opening an assembly plant in Tula, Russia, in 2019 and signing an agreement with GM to take over their Talegaon plant in India from 2020.

The company’s Global Strategy Vice President Liu Xiangshang said the latest venture is part of Great Wall’s plans to expand into the South-East Asian (ASEAN) Market.

“The acquisition of GM’s Thai Rayong plant will help the business development of Great Wall Motors in Thailand and the ASEAN market,” said Xiangshang. “Great Wall Motors will expand through the entire ASEAN region with Thailand as the centre and export its products to other ASEAN countries as well as Australia.

“The ASEAN market is a developing market and a market with great prospects and potential. Entering the Thai market is the first step for Great Wall Motors to ensure the ASEAN market, and is also an important step in Great Wall Motors’ global strategy.”

Great Wall’s investment into the ASEAN region comes at a time where GM are looking to exit, with the American manufacturer intending to focus their attention on the global left-hand drive market rather than the much smaller right-hand drive market.

“Our decision to cease production at the Rayong site is based on GM’s global strategy and optimisation of our manufacturing footprint around the world,” said GM International Operations Senior Vice President Julian Blissett. “In this context, sale of the Rayong plants to Great Wall is the best option to support the future vehicle manufacturing at this site.”

The arrival of Great Wall is expected to bring a boost to the Rayong area, with job creation jobs and giving back to the community a strong priority for the brand.

“Great Walls Motors investment will create more jobs in the local area, including direct and indirect employment and further enhance skill development in the automotive industry. We will also promote the development of the local supply chain, R&D and related industries, plus contribute more to the exchequer of both the local Rayong and Thailand governments,” said Xiangshang.

The Rayong plant has produced approximately 1.4 million vehicles for GM since opening its doors in 2000.

Source: Autotalk | Great Wall signs deal with GM for Thailand plant

20 Feb 2020