Gasgoo.com (Shanghai December 26) - Third-phase expansion at the Shanghai GM DongYue Motors production site in Yantai, Shandong is underway, with its first vehicle having successfully rolled off the assembly line, the Guangzhou Daily reported today. The expansion is expected to be fully completed by next May, when the plant's production efficiency will double.

Shanghai GM began the expansion project in late July 2010, since when work has been done on adding new facilities and equipment for body, painting and general assembly. Expansion work is winding up, with most facilities already operational.

Expansion at the DongYue factory is only part of Shanghai GM's overall strategy, with construction work at the joint venture's new seven billion yuan ($1.11b) Beisheng factory in Shenyang, Liaoning also underway. Work began at the site this September, which upon completion will help boost the joint venture's annual production capacity to 1.2 million vehicles.

Shanghai GM has sold over 1.15 million vehicles since the beginning of the year, over 21 percent higher than the amount sold in the first 11 months of 2010. The joint venture plans to set a sales target of 1.3 million units for next year, General Manager Ye Yongming said.