GM and FAW Joint Venture: Winning in China to Win the World


On August 30, 2009, the vehicle map of Northeast Changchun declared a successful expansion: “FAW-GM Commercial Vehicle Co., Ltd.”, a joint venture between General Motors and China FAW, was formally launched.

The total investment is RMB 2 billion; FAW and GM each have a 50% share; mainly engaged in the research, development, production, sales, and export of light trucks and light buses – another major automobile project under General Motors This shows that there have been breakthroughs in the "China Strategy" that GM has implemented for more than 10 years: not only in the passenger vehicle industry but also in the light commercial vehicle market.

General Motors, which once stood up, continued to place its hope of rejuvenation on China’s hot land. As Ruili Li, General Motors Executive Vice President and President of International Operations, said, this is an active expansion of GM's existing product lineup in China; this new investment behavior also “strongly conveys important information from General Motors. That is, we will continue to invest in the business in China, to implement GM's commitment to the Chinese market, and to develop a strategy based on China, China, and China. The US “Wall Street Journal” also commented on this move by General Motors: The establishment of FAW GM was a strategic step for General Motors to use China as a pillar of its global operations. General Motors hopes to rely on the power of the Chinese market to find the fulcrum of re-establishment as soon as possible.

The treasure was held in China. It was the case more than a decade ago. It continues today. This is GM's all-encompassing and thoughtful vision.

The new GM is accelerating and a long time faith has been ignited even more fiercely: only by winning the Chinese market can we win the future.

Although there have been many mistakes in the United States, General Motors has always been singing high praise songs in China across the ocean. Her success in China first stems from the accurate assessment of China’s economic development prospects. As early as the mid-1990s, GM decision makers at the time had accurately asserted that the Chinese auto industry has "unrestricted" development potential and that China is expected to become the world's largest auto market. And predict that this goal can be achieved within the next 20 to 25 years.

As a result, the weight of "China" is increasing on the territory of GM's global business. Strategic expansion based on Shanghai, from the joint venture with SAIC to build Shanghai General Motors, and the establishment of the Pan-Asian Automotive Technology Center, to the West to Guangxi Liuzhou “China and Foreign” to jointly build SAIC-GM-Wuling, to attack the city and win a victory. Oh, it's almost invincible. Everything in the past has proven that GM’s “China strategy” is correct, and “winning in China” has become a necessary return for her ten years of hard work.

After the pains of rebirth, a brand-new GM began to accelerate. In the United States, she will abandon many and change many things. In China, she only needs to “refuel” without having to “reverse” and “shift”. Moreover, one of the long-standing beliefs was ignited even more fiercely: Only winning the Chinese market can win the future.

In the future, how can we continue to "win in China"? Well-thought-out GM China responded with a new "five-year strategic plan." In the next five years, GM China will launch more than 30 new and upgraded models covering all brands in China. Buick and Chevrolet will introduce 5 new models each within two years; 9 new and upgraded engines and 5 models will be invested in China within five years. New and upgraded transmissions; sales of 2 million vehicles in China by 2014. According to Gan Wenwei, president and general manager of General Motors China, in addition to new products, GM China will also strive to achieve growth through the expansion of its dealer network, especially in the rapidly growing third and fourth-tier cities. At the same time, in addition to the new factory recently established in Shenyang, GM will also add a factory in China in the next five years to meet the growing consumer demand.

Adding yards for technology development will also be the "re-play scene" of GM China in the future. GM will invest in the establishment of a forward-looking technology research center in Shanghai and cooperate with various organizations of the Chinese government, academia and related industries to implement alternative fuels, alternative energy power propulsion systems, manufacturing processes, and supply chain energy efficiency. R & D projects; At the same time, General Motors has teamed up with Tsinghua University and SAIC to establish China's automotive energy technology research and development center to study and formulate a comprehensive and comprehensive Chinese vehicle energy strategy. Whether it is the breadth of the research field or the high level of investment, General Motors has launched a series of initiatives that are unprecedented among all multinational automobile companies in China.

In advancing new energy vehicles, General China has spared no effort to gain a lot of real money. The five new energy vehicles that were unveiled at the 2008 Beijing Auto Show will gradually enter the production schedule. Chevrolet Volt, known as the vanguard of the era of automotive electrification, is an extended-range electric vehicle expected to be officially listed in China in 2011. This will allow China to become the world’s first importer of this advanced innovation after the United States’ domestic market. One of the models of the market. A Volt extended-range electric vehicle is a symbol of GM's commitment to the future.

In the era of fast fish eating slow fish, it must be faster than competitors. This is the winning logic that GM has followed for many years in the Chinese market

In China, GM’s blueprint for the future has been clearly demonstrated. What will be the path to the future? Maybe, looking at her past will tell her the future.

In the past ten years, it has been faster than the competition and has always been the winning logic of General Motors in the Chinese market.

The first company to set up a joint venture vehicle and R&D company in China at the same time: In 1997, GM formally signed a contract with SAIC to establish Shanghai General Motors Co., Ltd. and Pan Asia Automotive Technology Center Co., Ltd., becoming the first company to be established in China. Automotive auto joint ventures and automotive technology R&D companies are multinational automotive companies.

The first to establish the family car price standard of 100,000 yuan price: In June 2001, when the price family car was difficult to see 100,000 yuan on the market, the general-purpose Buick Sailo compact car was officially put on the market, 1.6 liters displacement, automatic transmission, ABS, The deployment of airbags and other air-conditioners makes the sensational people almost have a "not to marry" mentality. The concept of "100,000 yuan family car" has preliminarily established a new concept of Chinese consumers' car consumption, which has a milestone significance for the development of Chinese family cars.

The first car finance company was established in China: In August 2004, General Motors and SAIC Group established China’s first auto finance company, SAIC General Motors Financial Co., Ltd., which is responsible for general automobile sales in both wholesale and retail sectors. SAIC's joint venture provides financial services. As of August 20 this year, the retail credit business of SAIC General Motors Finance Co., Ltd. has grown by 20% compared to the same period of last year, total retail assets have exceeded RMB 10 billion, and loan services have been provided to more than 225,000 consumers. While involved in auto finance, GM has earned a lot of brand followers while also offering preferential measures such as free down payment and zero interest rate to customers who purchase the company's products.

There is no doubt that in the coming years, "First" will remain the goal of GM's ambition and struggle.

Many auto giants want to sell cars in China but do not want to eventually sell them into Chinese cars. General Motors is undoubtedly a master of profound understanding in car production localization

In the Chinese market, if Ford's products are promoted in a "biased European design" style, Chrysler's products are aimed at authentic "American impressions" and GM products rely on its "overall localization" strategy. General Motors China President and General Manager Gan Wenwei said: "GM is not simply building a joint venture in China to produce and sell cars. We have also brought a complete industrial value chain including automotive design and R&D, and we have actively participated in the Chinese automotive industry. In particular, development has enhanced the local innovation and development capabilities, demonstrating GM's commitment and confidence in the long-term development of the Chinese market."

The Pan-Asian Technology Center is a member of GM’s global engineering system. General Motors has injected its global engineering development process into the Pan-Asian Technology Center and has provided Pan-Asian Technology Center with respect to resource allocation, best practices, standardization, and technical qualifications. GM's globally standardized process management. The Pan Asia Technical Automotive Center has played a crucial role in how GM better understands and meets the needs of local consumers.

Facts have proved that after the Pan-Asian Technology Center's localization of packaging and transformation, model personality more in line with the Chinese Oriental aesthetic taste. Pan Asia is like a trump card in the hands of General Motors. After several years of growth, it is now getting fuller. It is playing an increasingly important role in GM’s six core R&D institutions globally.

GM’s multi-brand strategy has suffered criticism, but in the face of a diverse, large Chinese auto market, “multi-brand” has caused GM to step out of another day.

A global financial crisis has caused GM’s multi-brand strategy to become a negative teaching material. However, in the Chinese automobile market where consumer habits and characteristics are extremely diversified, GM’s multi-brand strategy seems to be tailor-made for China: “Entering There must be one for you in my showroom.” In contrast to the lack of follow-up products for some automakers, GM’s multi-brand strategy has immediately become a “killer” for containing competitors.

The "multi-brand, full-series" strategy initiated by General Motors in China began in 2004. Since then "Buick" has been upgraded to "parent brand", with Junwei [reviewed image forum] and Excelle [review image forum] to subdivide different market segments, and at the same time it has begun to create the "Chevrolet" brand that is intended to be "all roads." In 2005, Sioux under "Buick" was transferred to "Chevrolet", and also launched Jing Cheng and Le Fun. The "Cadillac" brand has also officially entered the market. That year it became GM's new record-breaking year in China, launching a total of more than 10 models of new and modified models. In 2006, the "Saab" brand was incorporated into Shanghai General Motors, Buick was launched as LaCrosse, the "Chevrolet" was introduced as a music style, and "Cadillac" was launched as a heavyweight model SLS Seville.

When launching the three differentiated brands Cadillac, Buick and Chevrolet, General Motors gave each of the three brands a unique, stable, and value-for-money brand identity, focusing on different customer segments. Through step-by-step, General Motors products have formed a “pyramid” structure in China with Cadillac at the spire, Buick at the tower, and Chevrolet at Taki. It has become the first company to launch three brands with the most complete architecture and longest product line. Joint venture car company. Because it is just right for the Chinese market, the multi-brand strategy has become more prominent in China, and it has not suffered from Waterloo because of GM's restructuring in the United States. General Motors wants to "win in China" again, and the multi-brand road will obviously continue.


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