Saturday, September 22, 2012

China, not so cheap.General Motors new proving grounds.

General Motors are to open a new proving ground in China.

The No. 1 US automaker and its joint venture partners, including SAIC Motor, invested about $252.5 million to build what GM China President Kevin Wale called the country's largest proving ground.

GM invests $1.5 billion annually in China. The 1,400-acre (560-hectare) facility was opened in Guangde County, Anhui province, and will employ about 100 people

1,400-acres for $252.5 million = 5.54 acres per $1 million (General Motors proving grounds China)

4255-acres for $3 million = 1418 acres per $1 million (Old Honda proving grounds California picture below)

This equates to 255 times the cost of my proposed site.

China is far more expensive than America to set up.

It must be said that GM have a complete ready for purpose facility. The proposed site in America may require some updates and customisation.

Despite that, the California campus is still in my opinion, very good value. A similar proving grounds in the same are of America cost $60 million to set up (Hyundai).

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