FAW-GM Moves Localization of GMC Brands for Commercial Vehicles

If the news is true, GM’s four major brands, Buick, Chevrolet, Cadillac and GMC, will all be manufactured in China.

After the introduction of the liberation 501 light truck and MPV free wind using common technology, the FAW-GM Commercial Vehicle Co., Ltd., which is almost the same age as the new GM, finally moved the idea of ​​localizing the GMC brand.

According to an informed source from FAW-GM's marketing department, the GM's commercial vehicle brand GMC will formulate a domestic plan around the end of the year, but the related product plan is still in a confidential stage. If the news is true, GM’s four brands, Buick, Chevrolet, Cadillac and GMC, will all be manufactured in China.

“GMC domestically is one of the plans for the establishment of FAW-GM. However, at present, everything has not been confirmed. Please contact FAW-GM Changchun headquarters for related matters.” The production department of FAW-GM Hongta Yunnan Auto Manufacturing Co., Ltd. received an interview by telephone.

The reporter asked GPC's domestic schedules and product plans respectively from the General Public Relations Department of China and the FAW General Management Committee. However, the other party refused the reporter's interview on the ground of “uninformed”.

GMC domestic can be expected

As the first major project after the establishment of “New GM”, GM’s intention to use FAW-GM’s platform to further enhance the Chinese market’s discourse power is obvious.

Luo Ruili, executive vice president of General Motors and president of the International Operations Division, said in the early days of the establishment of FAW GM that he will "take GM's leading technology and new products to enrich the business content of China FAW and General Motors in the Chinese market." Obviously, General Motors is not satisfied with the technical output, but it is necessary to continue to enhance its own commercial vehicle brands' right to speak in the Chinese market. GMC's localization is the most realistic choice.

At present, GM’s three passenger car brands, Buick, Cadillac and Chevrolet, have all achieved production in China.

With the help of FAW-GM's platform, the commercial vehicle brand GMC will be made in China.

The GMC domestic issue has been repeatedly mentioned within FAW-GM and is currently waiting for the right time.

“The application of the liberation 501 light truck and the “free wind” variant of the MPV model with general-purpose technology can be seen as the running-in of the GMC before it is made domestically. I understand that the FAMC GM will officially discuss the localization of the GMC before and after the end of the year.” FAW A general marketing person revealed to reporters.

In addition, in order to bring domestically produced GMC products to market as soon as possible, FAW-GM may not wait until the completion of the new plant and then promote GMC's domestic production plan. Instead, it will initially use the capacity of FAW-GM's Hongta Company and then choose another plant to build the plant.

GMC's flagship light trucks and MPV products complement the SAIC-GM-Wuling mini-commercial vehicles to fully complement the Chinese market. After GMC realizes domestic production, FAW-GM will further enrich the products of the two major brands, Liberation and GMC. At the same time, China has further explored the international market."

Daimler, the global commercial vehicle giant, and Beiqi Foton have successfully entered into a joint venture. In addition to Daimler and the Beijing Benz project in Fujian, Daimler has completed the comprehensive layout of passenger cars and commercial vehicles in China and has been admiring GM. In addition to the temptation of the commercial vehicle market with huge growth potential in China, it is imminent to seize the Chinese market through domestic GMC.

Product planning conjecture

“Although the GMC domestic plan is likely to be released before and after the end of the year, the specific timetable is still not confirmed and the product planning is completely unknown.” The aforementioned FAW-GM told reporters that “GM China President Gan Wenwei once stated that FAW-GM was established three years later. The GMC will be made domestically, and I can only tell you that the GMC domestic process is likely to accelerate."

The GMC brand mainly focuses on pickups, MPVs, and some SUVs, mainly including Envoy, Canyon, Sierra, Yukon, and Safari. ), "Savana", "Business Star" and a series of models. Among them, "Canyon" and "Sierra" are pickup products; "Envoy" and "Yukon" are SUV models; "Business Star" is a high-end multi-function MPV. The "Terrain" is a compact SUV product of GMC.

Currently GMC domestic models are more likely to be dominated by MPV and SUV products. FAW-GM pickup trucks will still use the Liberation brand in the short term. FAW's extensive product line of light truck products has made GMC light trucks domestically not very urgent.

The equipment of FAW-GM's Harbin light vehicle factory is obsolete, and the MPV product line of FAW-GM's Hongta Company can be used as a production platform that GMC-made MPV and other products can use in the initial stage. "FAW GM has formulated an expansion plan and will achieve an increase of 100,000 to 200,000 by the end of this year," said the FAW-GM sources. "GM will also provide FAW-GM capacity expansion and GMC domestic products. Powertrain support."

FAW's mature technology and product layout in light trucks has won a lot of market. The GMC pickup products, due to the high price and high fuel consumption, have not yet reached the domestic opportunity in the short term, MPV or SUV products can enter the Chinese market first.

Planning in China

For General Motors, it is the most urgent task to reinforce the fulcrum of China's business and further explore the Chinese market. Previously, Shanghai GM, which has contributed a considerable amount of profits to General Motors, and SAIC-GM-Wuling, which has achieved the single-brand sales championship in the domestic automobile market and launched its own sedan brand, have already made GM's business in China “live and work”. .

But these are unable to meet the new GM's "appetite", after the sale of Saab and Opel, GM has to get rid of the "baggage" to go light. Through the establishment of FAW-GM and the next launch of domestic GMC, the overall layout of GM's passenger and commercial vehicle markets in China, as well as the expansion of the Chinese market through the complementarities and benefits of several joint venture products, is the real purpose.

For GM, the existing technical level, production platform, marketing level and talent team of FAW-GM will become a good foundation for GMC.

Xiong Chuanlin, former general secretary of the Shanghai General Party Committee and deputy secretary-general of the China Association of Automobile Manufacturers, said in an interview with reporters that General Motors gave 1% of its shares to SAIC, entered the Indian market, launched SAIC-GM-Wuling’s own-brand vehicles, and established FAW-GM joint venture company and the future. GMC's domestic production is a reflection of GM's strong emphasis on the Chinese and even Asian markets.

It is worth noting that GM needs to balance the interests of several joint venture companies in China and fully explore the potential of consumption in the Chinese auto market. It must learn from the experience of North and South China Volkswagen, North and South Toyota and North and South Mazda, and use several brands to balance Give full play to the advantages of each platform.

“The reason why FAW-GM is not in a hurry to make GMC domestically is that one of the reasons is to consider SAIC's feelings and not to compete directly with its products,” said Gu Huanyu, a brand expert. “If GMC really welcomes domestic production, we must look at GM. How to balance and choose between the joint ventures."

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