Great Wall Motors (GWM) has announced its official entry into the Thai market, which will spearhead its planned expansion into the ASEAN region.
Today GWM and General Motors (GM) announced an agreement for the sale of GM Thailand’s manufacturing facilities in Rayong, although the deal is still subject to government and regulatory approvals.
Under a signed binding term sheet, GM Thailand and GM Powertrain Thailand legal entities, which include the Rayong vehicle assembly and powertrain facilities, will transfer to GWM. GM and GWM are targeting end of 2020 to close the deal and hand over the site.
GWM global strategy vice president Liu Xiangshang said, “The global strategy of Great Wall Motors has begun to take shape after more than 10 years of development. In the past two years, through the export model transformation and upgrades, Great Wall Motors has accelerated the pace of its strategic global rollout. In 2019, Great Wall Motors’ Tula plant in Russia successfully started production, and the company also reached an agreement with GM to acquire its Talegaon plant in India in early 2020.
“The acquisition of GM’s Thai Rayong plant will help the business development of Great Wall Motors in Thailand and the ASEAN market. Great Wall Motors will expand through the entire ASEAN region with Thailand as the center, and export its products to other ASEAN countries as well as Australia.
“The ASEAN automotive 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 enter the ASEAN market, and is also an important step in Great Wall Motors’ global strategy. Great Wall 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,” he said.
Since commencing manufacturing in 2000, the GM Rayong site has produced nearly 1.4 million Chevrolet trucks and large SUVs for domestic and export markets, as a regional manufacturing hub for mid-size trucks, SUVs and diesel engines.