On February 17th, GM (General Motors) and Great Wall Motors (GMW) announced in Rayong, Thailand, confirming that GWM will be acquiring General Motors’ manufacturing plant which is located in Rayong, Thailand.
The binding terms, that have been signed by the two parties mention that General Motors Thailand, along with Rayong ’s auto plant and powertrain plant, will be now acquired by Great Wall Motors. The final transfer and the transaction will be concluded by both parties by the end of this year; however, the agreement also needs to be approved by the government and regulatory bodies.
Following the transfer, the Rayong manufacturing plant located in Thailand become the third overseas, and 11th global full-process vehicle manufacturing center for Great Wall Motors. The Russian Tula plant and the India-based Talegaon plant take the first two spots.
In 2019, Great Wall Motors made a successful investment in a vehicle plant located in Tula, Russia, and the company’s Haval F7 was also made available in the local market earlier this year. To acquire GM’s Tarigaon plant in India, Great Wall Motors signed another agreement.
The Rayong plant in Thailand, which will be soon acquired, will play a vital role in helping Great Wall Motors to expand its reach in Thai and ASEAN markets shortly, and the products made in this plant will be transported to other ASEAN (Association of Southeast Asian Nations) countries, as well as Australia.
Great Wall Motors believes that the ASEAN automotive market has a lot to offer in terms of prospects and potential. This investment made by Great Wall Motors will directly or indirectly provide local job opportunities, encourage local support, R&D (research and development) and related industry development. Moreover, it will make a considerable contribution to the Thai government and Rayong Province in terms of tax.
Since the operation started in the Rayong plant in Thailand in 2000, it served as a regional manufacturing center for GM and produced about 1.4 million vehicles, which is targeted at the domestic and export markets of Thailand.
There are a few relevant reports that suggest the Rayong plant is capable of producing 180,000 units each year, while the annual production capacity of the supporting powertrain plant is 120,000 units. After conducting a detailed analysis of the Thai business, General Motors decided to discontinue manufacturing and sales in Thailand. GM will be providing termination and transition support for concerned employees while offering well-regulated transition assistance to its partners.