General Motors and China FAW Group Corp. unveiled a joint venture on Sunday to build light duty commercial vehicles in China. The new company will make existing FAW-badged vehicles as well as GM-branded products in the future.

With an investment of 2 billion yuan ($292.8 million), the 50-50 joint venture between GM China and FAW will be based in Changchun in northeast China's Jilin province, according to information released by GM China.

The new company, FAW-GM Light Duty Commercial Vehicle Co., will build on a base comprising two former FAW plants: Harbin Light Vehicle Co. in Harbin of northeast China's Heilongjiang province, and Hongta Yunnan Automobile Manufacturing Co. in Qujing of southwest China's Yunnan province.

The joint venture will build a new facility in Changchun to increase its capacity from around 100,000 units now to 200,000 units next year according to Kevin Wale. Wale is GM China's president and managing director and he spoke to Automotive News China at a media briefing on Sunday.

GM China says while continuing to build existing FAW-badged products in China, its new joint venture "leaves room for the creation of GM derivatives."

Wale declined to give specifics on what products the joint venture will make under GM's brands.

Additionally, Wale said that while focusing on the China market, the new venture will also explore opportunities to sell its products abroad.