SAIC-GM-Wuling Automobile Co started production at its new engine plant in Qingdao on March 18 with a ceremony to commemorate the event.

The engines to be made at the plant will be used in the Wuling brand minivans produced by SAIC-GM-Wuling, Chevrolet-badged Lova as well as some new models to be built by Shanghai GM.

SAIC-GM-Wuling began to build the Qingdao engine plant in mid-2007, which has a designed output capacity of 350,000 units per year. Total investment for the project were 1.59 billion yuan($233 million).

SAIC-GM-Wuling's first engine plant started operation in the southwest China city of Liuzhou in September 2007.

Also yesterday the 300,000th Wuling minivan rolled off of the production line of SAIC-GM-Wuling's Qingdao branch. The subsidiary plant has an annual capacity of 300,000 vehicles.

SAIC-GM-Wuling, headquartered in Liuzhou city of Guangxi province, is a joint venture of Shanghai Automotive Industries Corp., General Motors and Liuzhou Wuling Automotive Co.