SAIC-GM-Wuling

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SAIC-GM-Wuling Automobile
上汽通用五菱汽车股份有限公司
Type Joint venture
Industry Automotive
Founded 18 November 2002
Headquarters Liuzhou, Guangxi, China
Area served China
Key people Shen Yang (General Manager)[1]
Products Mini-trucks, microvans, passenger cars
Employees 8,000
Parent SAIC Motor (50.1%)
General Motors (34%)
Wuling Automobile Co., Ltd. (15.9%)[2]
Website SGMW

SAIC-GM-Wuling Automobile (上汽通用五菱汽车股份有限公司) is a joint venture between General Motors, SAIC Motor, and Liuzhou Wuling Motors Co Ltd. Based in Liuzhou, Guangxi, it is the manufacturer of commercial and consumer vehicles sold in China under the Wuling and Baojun marques, respectively. The name is sometimes shortened to SGMW.

While SAIC-GM-Wuling may be best known for its pint-sized commercial offerings sold in the poorer interior,[3] in 2010 it created a passenger car brand to compete against indigenous products, Baojun.[4] The company has sold a passenger vehicle, the Chevy Spark, since at least 2007, however.[5]

One of the best-selling SAIC-GM-Wuling models is a tiny commercial minivan that, as of 2007, could be had for less than US$4,000,[5] and, as of 2012, a Baojun sedan sells for near US$10,000.[4] Such cheap offerings typify SAIC-GM-Wuling, a major mass-volume producer in the Chinese interior.[citation needed]

Wuling brand logo

Contents

History [edit]

GM purchased a 34% stake in the company in 2002[6] and has since 2008 sought to increase ownership.[7]

Etsong acquisition

The SAIC-GM-Wuling Automobile joint venture, best known for its tiny offerings, has also taken over diminutive Etsong Vehicle Manufacturing, a small-scale manufacturing concern based in Qingdao, China. The factory was originally set up in 1997 by a Chinese tobacco company and was then briefly owned by the First Automobile Works before the SAIC group took over the factory in 2005. Since 2000, the factory built a number of Austin Maestro/Montego hybrids under the Etsong Lubao and Etsong Lande nameplates, but SGMW did not recommence production of these aged models. Instead the factory is used to augment SGMW's mini vehicle capacity.[8]

Baojun

Perhaps the culmination of GM's dream to build a "farmer's car", the Baojun brand was established in 2010 and aims to sell to consumers in 3rd and 4th tier Chinese cities.[9] Such large- and medium-sized Chinese cities are not counted among the top four in terms of population and contribution to GDP.[10] Baojun currently competes for consumers with indigenous brands like Chery and Geely.[4] Its two offerings include, as of 2012, the 630, a small four-door sedan, and the Lechi minicar.[4] The latter is an updated version of the first generation Chevrolet Spark and was previously sold under the Chevrolet brand name. During the transition between brands, the Lechi was offered as both a Chevrolet and a Baojun.[11]

Products [edit]

Microvans
Wuling Hongtu (LZW 6381)
The Baojun 630
Baojun

Operations [edit]

The company has a number of production bases. These include a facility in Liuzhou, Guangxi,[4] and a plant in Qingdao, which it had purchased c. 2007.[5]

Sales [edit]

SAIC-GM-Wuling's sales in 2009 topped 1 million units and reached 1,226,860 in 2010.[13] SAIC-GM-Wuling sold a total of 1,445,203 vehicles in China in 2012.[14]

Export [edit]

In 2009, Wuling began to export pint-sized commercial vehicles to South America, the Middle East, and North Africa where they are sold under the General Motors Chevrolet brand.[12] These exports may constitute knock-down kits only[citation needed] with final assembly only done in the receiving nation as is the case in Egypt.[15]

As of 2010 GM and SAIC have established an equally owned joint venture to export SAIC-GM-Wuling products to India.[7]

Wuling mini-trucks were exported in limited numbers to the United States from 2004 to 2005. SGMW USA, a Cobra Motors company, imported and distributed the vehicles. Those trucks were limited to off-road use (i.e. private property), and were primarily marketed as industrial and commercial vehicles.[16]

References [edit]

  1. ^ "SGMW’s Baojun Brand to Sell Passenger Cars in China". General Motors (Press release). 2010-07-18. 
  2. ^ Tang, Rachel (November 2009). "The Rise of China’s Auto Industry and Its Impact on the U.S. Motor Vehicle Industry". Congressional Research Service. p. 9. http://www.fas.org/sgp/crs/row/R40924.pdf. Retrieved 2012-11-30.
  3. ^ Bennett, Jeff (November 29, 2012). "GM China Sets $1 Billion Plant". wsj.com. Dow Jones and Company. Retrieved November 29, 2012. "The partnership has been China's top mini-commercial vehicle producer since 2006 and currently holds 47.5% of the country's small commercial van market." 
  4. ^ a b c d e Shirouzu, Norihiko (Nov 18, 2012). "GM ups capacity in no-frills China car market". reuters.com. Thompson Reuters. Retrieved November 23, 2012. 
  5. ^ a b c Schifferes, Steve (17 May 2007). "Cracking China's car market". bbc.co.uk. BBC. Retrieved November 29, 2012. 
  6. ^ White, Joseph B. (20 Apr 2007). "For GM in China, Tiny Is Mighty; Wuling Venture Plans Expansion as Sales of Small Cars Surge". Wall Street Journal. pp. A9. 
  7. ^ a b Shirouzu, Norihiko (12 Nov 2010). "Corporate News: GM to Strengthen China Stake". Wall Street Journal. pp. B.2. 
  8. ^ "GM buys old Chinese car factory". The Economic Times (Bennett, Coleman & Co. Ltd.). 2005-06-03. Retrieved 2012-11-30. 
  9. ^ For farmer's car ambition, see McGregor, Richard (20 July 2001). "GM looks to China for auto triple alliance". Financial Times. Pearson. p. 31. 
  10. ^ Mullich, Joe. "China’s "Second-Tier" Cities Take Off". The Wall Street Journal. Dow Jones and Company, Inc. Retrieved June 4, 2012. 
  11. ^ "Chevrolet Lechi to Be Sold Under Baojun Brand in China". GM Media: China (News release). General Motors. 2012-08-15. 
  12. ^ a b Li Fangfang (2009-08-14). "Wuling minis go global under GM Chevrolet brand". China Daily. Retrieved 2010-12-02. 
  13. ^ "SAIC-GM-Wuling Automobile Co. Ltd. (SAIC-GM-Wuling)". GM China. Retrieved November 1, 2011. 
  14. ^ "GM 2012 global sales rise 2.9 pct on strong Chevy demand". Reuters. 14 January 2013. Retrieved 20 January 2013. 
  15. ^ "CHINA: SAIC-GM-Wuling to start assembly of Chevy Move in Q3/2012". just - auto global news. 23 Nov 2011. 
  16. ^ "MiniTruck Products". SGMW USA MiniTrucks, Off Road Utility Vehicles and Low Speed Vehicles (LSV). SGMW USA. Archived from the original on 2007-09-30. 

External links [edit]