General Motors in China

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Solomon Miller
9 years ago
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1 Backgrounder T GM China General Motors in China General Motors Co., one of the world's largest automakers, traces its roots back to The General Motors-China relationship dates back more than nine decades. GM China's vision is together with its partners to be the best automotive group in China. GM has 10 joint ventures and two wholly owned foreign enterprises as well as more than 58,000 employees in China. GM, along with its joint ventures, offers the broadest lineup of vehicles and brands among automakers in China. Products are sold under the Buick, Cadillac, Chevrolet, Opel, Baojun, Wuling and Jiefang nameplates. In 2013, domestic sales of vehicles by GM and its joint ventures jumped 11.4 percent on an annual basis to 3,160,377 units. During the first half of 2014, GM s sales in China increased 10.5 percent from last year s previous record for the period to 1,731,282 units. Wholly Owned Foreign Enterprises GM (China) Investment Corp. is a wholly owned venture based in Shanghai Municipality, which was founded on November 30, It houses all of GM s local staff and is an investor in GM s vehicle joint ventures in China. GM Warehousing and Trading (Shanghai) Co. Ltd. is located in Shanghai Municipality s Waigaoqiao Free Trade Zone. The wholly owned parts distribution center (PDC) started operation in August It was established to ensure the quick delivery of genuine GM parts to customers in China. The PDC features a fully computerized management and inventory control system. 1

GM has 10 joint ventures and two wholly owned foreign enterprises as well as more than 58,000 employees in China.

2 Joint Ventures Shanghai General Motors Co., Ltd. is a joint venture between SAICMOTOR and General Motors, established on June 12, SGM has four major manufacturing bases, Jinqiao in Pudong, Dongyue in Yantai, Norsom in Shenyang and Wuhan base (under construction) as well as 6 vehicle plants and 2 powertrain plants. With its customer-oriented and market-driven philosophy, SGM satisfies the ever-growing market demand by offering rich product lines and superior services. Today, SGM is a multi-brand company with over 20 product lines including the world-renowned Buick, Chevrolet, and Cadillac brands, covering the luxury, compact, sedan, MPV, and SUV segments, as well as hybrid and electric vehicles. In 2013, it had record domestic sales of 1,512,000 units. Pan Asia Technical Automotive Center Co., Ltd. (PATAC) is a joint venture between GM and SAIC, which was founded on June 12, It provides automotive engineering services, including design, development, testing and validation of components and vehicles. Among its achievements is the development of the Chevrolet Sail small car and Buick GL8 luxury MPV for Shanghai GM. PATAC broke ground for a new R&D facility in Shanghai in June Shanghai GM Norsom Motors Co., Ltd. is a joint venture formerly known as Jinbei General Motors. Shanghai GM holds a 50 percent stake and oversees management. GM China and SAIC each hold 25 percent stakes in the facility, which is located in Shenyang, Liaoning. It manufactures the Buick GL8 and FirstLand, and the Chevrolet Captiva and Cruze. Shanghai GM Dong Yue Motors Co., Ltd. is a joint venture manufacturing facility situated in Yantai, Shandong. Shanghai GM holds a 50 percent stake and oversees management. GM China and SAIC each hold 25 percent stakes in the facility, which manufactures the Chevrolet Epica, Aveo and Trax, and the Buick Excelle GT and XT. 2

With its customer-oriented and market-driven philosophy, SGM satisfies the ever-growing market demand by offering rich product lines and superior services.

3 Shanghai GM Dong Yue Powertrain is a joint venture located in Yantai, Shandong. Shanghai GM owns 50 percent and oversees management. GM China and SAIC each own 25 percent. The facility supplies powertrains to Shanghai GM. SAIC-GM-Wuling Automobile Co., Ltd. is a joint venture that was founded on November 18, SAIC has a 50.1 percent stake, GM China a 44.0 percent stake and Wuling Motors a 5.9 percent stake. SAIC-GM-Wuling is based in Liuzhou, Guangxi Zhuang Autonomous Region, in southwestern China. It has a second manufacturing base in Qingdao, Shandong. In 2012, SAIC-GM-Wuling opened its new passenger car production facility near its headquarters in Liuzhou and announced plans to build a third production base in Chongqing Municipality. SAIC-GM-Wuling manufactures a range of Wuling brand mini-trucks and minivans as well as a growing family of Baojun brand passenger cars. In 2013, SAIC-GM-Wuling s domestic sales totaled 1,584,920 units. Shanghai OnStar Telematics Co., Ltd. is a Shanghai Municipality-based joint venture that provides a range of in-vehicle safety, security and communication services. It began rolling out its services in December 2009, initially in vehicles manufactured and distributed in China by Shanghai GM. GM subsidiary OnStar and SAIC subsidiary Shanghai Automotive Industry Sales Co. Ltd. (SAISC) each own 40 percent of the joint venture. Shanghai GM owns the remaining 20 percent. Shanghai OnStar operates call centers in Shanghai and Xiamen, Fujian. It has more than 770,000 subscribers, making it the leader in the Chinese telematics market. FAW-GM Light Duty Commercial Vehicle Co., Ltd. is a joint venture between GM China and China FAW Group Corp. (FAW), one of China s leading automakers. It was launched on August 30, 2009, and is based in Changchun, Jilin. It is focused on the production and sale of light-duty trucks and vans. It also engages in R&D, exports and aftersales support. The joint venture has facilities in Changchun; Harbin, Heilongjiang; and Qujing, Yunnan. FAW-GM sold 59,092 vehicles in China in

0 percent stake and Wuling Motors a 5.9 percent stake. SAIC-GM-Wuling is based in Liuzhou, Guangxi Zhuang Autonomous Region, in southwestern China.

4 Shanghai Chengxin Used Car Operation and Management Co., Ltd. is a joint venture established by GM China, Shanghai GM and SAIC subsidiary Shanghai Automotive Industry Sales Co. Ltd. (SAISC) on October 28, GM China and Shanghai GM both have stakes of 33 percent, with SAISC holding the remaining 34 percent. The joint venture will cooperate with current distributors of Shanghai GM products in the establishment of dedicated used car sales and service facilities across China. The facilities will offer vehicles from Shanghai GM s Buick, Cadillac and Chevrolet brands as well as selected brands from other automakers. SAIC General Motors Sales Co., Ltd. is a joint venture between GM China and SAIC Motor that was established on November 25, GM China has a 49 percent stake and SAIC Motor a 51 percent stake. R&D Centers and Other Organizations GM China Advanced Technical Center is the most comprehensive and advanced automotive development center in China. It includes research and development, advanced design, vehicle engineering, powertrain engineering and OnStar laboratories. As a member of GM s global engineering and design network, the facility is developing solutions for GM on a domestic and global basis while supporting the company s vision to design, build and sell the world s best vehicles. The first phase of the facility opened in September 2011 and the second phase opened in November Shanghai GM/PATAC Guangde Proving Ground was opened by GM, SAIC, Shanghai GM and PATAC on September 22, 2012, in Guangde County, Anhui. The 5.67-square-kilometer proving ground, which is China s largest, represents an investment of RMB 1.6 billion. It includes more than 60 kilometers of test roads along with a comprehensive range of support facilities that enable it to carry out testing involving 67 different driving conditions. Shanghai GM and PATAC are overseeing the proving ground s operation. 4

The joint venture will cooperate with current distributors of Shanghai GM products in the establishment of dedicated used car sales and service facilities across China.

5 ACDelco, the world s leading aftermarket brand, operates a growing network of wholesale distributors and ACDelco Service Centers in China. The facilities, which stock genuine ACDelco parts, provide repair and maintenance services for all makes and models of vehicles on China s roads. 5

The facilities, which stock genuine ACDelco parts, provide repair and

Chevrolet, Buick and Cadillac Retail Sales Increases Drive GM s June Share Growth

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