Business

Monday June 1, 2009

GM and China a time-tested perfect fit


By Elizabeth Chong

EIGHT decades together can be trying at best for any relationship but General Motors Corp (GM) and China seem to have found the perfect fit in each other.

Its financial woes at home notwithstanding, the Detroit-based US automaker is enjoying growing sales and solid support in the world’s largest car market.

For four consecutive years, GM has been the leading global automaker in China, closing 2008 with an estimated market share of 12.1% on sales of close to 1.1 million units.

With eight joint ventures (JV) and two wholly-owned foreign enterprises, it has more than 21,000 employees and offers the broadest line-up of vehicles and brands in China. The brands are Buick, Cadillac, Chevrolet, Opel, Saab and Wuling.

Cadillac's new SRX mid-sized lucury Crossover showcased at the Auto Shanghai 2009

Its 50:50 JV with Shanghai Auto-motive Industry Corp Group (SAIC), Shanghai General Motors Co Ltd, is a leading passenger car manufacturer that builds, imports and sells a comprehensive range of Buick, Cadillac, Chevrolet and Saab products.

In 1997, it teamed up with SAIC to establish Pan Asia Technical Automotive Centre (PATAC), China’s first automotive engineering and design JV.

PATAC aims to become China’s leader in providing competitive world-class automotive design, development and testing services. Its achievements include the development of Qilin, the first concept car designed in China by Chinese engineers and designers for the China market; the development of the Phoenix fuel cell concept vehicle and the development of a 2.0-litre four-cylinder engine for Shanghai GM.

It also participated in the re-engineering of the Buick LaCrosse premium sedan and Cadillac SLS luxury sedan for Shanghai GM.

Its facilities include a virtual reality design studio; a prototype laboratory; a powertrain lab; a kinematics and compliance lab; a noise, vibration and harshness test lab, emission testing facilities and short-distance test track that can simulate all types of road conditions.

In March, PATAC opened China’s most advanced vehicle safety lab that includes a sled impact test lab and sub-system safety test lab.

Another notable JV is SAIC-GM- Wuling Automobile Co Ltd in which GM China has a 34% stake, SAIC 50.1% and Wuling Motors 15.9%.

The company manufactures a range of Wuling brand mini-trucks and mini-vans as well as the Chevrolet Spark mini-car. It achieved domestic sales of 647,296 units last year, making it the top mini-vehicle domestic producer for the third straight year.


Latest developments on GM, Crysler and related reports from AP-Wire

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