German auto maker GBM Automotive announced Wednesday that it will create a new business unit with a goal of opening new factory locations in China by 2020.
The announcement follows recent reports that GBM will expand into China and that the firm is planning to expand production of its diesel-electric hybrid and electric vehicles in the country.GBM will take over the manufacturing of its cars, trucks, SUVs and light trucks, the company said in a statement.
The new business, called Auto GmbH, will be part of the German automaker’s larger automotive unit, Auto AG, which was spun off from GBM last year.GAB, or German Automotive Gmbh, will produce vehicles in Germany and China for global customers.
It will also be responsible for assembling vehicles in India and other emerging markets.
The news comes as GAB prepares to unveil a new line of electric vehicles.
The company’s newest model, the GAB R, will start shipping later this year and will be the company’s first electric vehicle.
The vehicle is scheduled to go on sale in 2018.