GM targets production of 4.31 million units in China in 2015

GM also expands into Egypt and India with Chinese JV partners

2012/11/12

Summary

GM China's wholesale volume and market share in China  GM considers China to be the major strategic market following North America, currently marketing GM models including the Chevrolet brand and local Wuling brand models. In the January-September period of 2012, it sold 2,119,800 units (on a factory shipment basis including exports), up 12.24% year-on-year, holding the largest share of the market in China.

 GM set a moderate vehicle production/sales target (including overseas CKD production/sales) in China for 2012 at 2.747 million units, up slightly more than 8% year-on-year. It also aims to sell 5 million units in 2015, doubling the 2011 sales of 2.54 million units.


 GM plans to gradually increase the production capacity of its joint venture plants in China from 2.59 million units as of October 2012, to slightly more than 2.74 million units by the end of 2013, and further to more than 4.4 million units in 2015 or later. It will also boost production through the expansion of the Shanghai plant and the construction of new CKD plants in western China and abroad.

 At the same time, it also plans to boost the production capacity for engines from 2.22 million units as of October 2012, to 2.57 million units at the end of 2012, to 3.34 million units at the end of 2014, and further to more than 3.57 million units in 2015 or later.

 GM is currently forming an alliance with SAIC Motor Corp. (SAIC) and has jointly expanded into emerging markets such as India and Egypt. In 2012, they will conduct CKD production of Shanghai GM (SGM) and SAIC-GM-Wuling (SGMW) models at their affiliated plants overseas. SAIC-GM-Wuling is also planning to build a joint venture plant in emerging countries in Latin America and other regions.


 The following reports GM's latest medium-term business plan in China and its activities on the expansion of production of vehicles and engines in and outside China.


Related Reports:
GM: posts record net income of $7.6 billion in 2011 (Mar. 30, 2012)
Beijing Motor Show 2012 (4): 16 international OEMs exhibit (Jul. 4, 2012)

GM's medium-term business plan in China (Business policy, Production & Sales target and Model plan)

Summary
Business
policy		 Promotion of vehicle electrification and cultivation of new segments
    * Concerning the introduction of new models, to focus on energy-efficient/eco-friendly models
* Through collaboration with the Chinese government/local companies/academia, to provide a vehicle electrification solution specialized for the market in China.
* To enhance marketing of uncultivated markets such as SUV, Cadillac high-end vehicle/midsize passenger car under Baojun brand/light-duty commercial vehicles in order to grow further.
* To strengthen automotive technology/product development at "Pan Asia Technical Automotive Center Co., Ltd." (PATAC), which is a joint R&D center with SAIC, integrating it in GM's global R&D network.
To strengthen an alliance with SAIC
* To share technology in the field of high-performance engine/new energy vehicle
* To jointly cultivate emerging markets
    Shanghai GM Group:
* To improve powertrain including an internal combustion engine
* To promote development/introduction/volume-production of new energy vehicles including EVs/HVs
  Test run of the Volt jointly with China Automotive Technology and Research Center (CATARC), to form an alliance on the establishment of standards for electric vehicles, and so on in China
* To promote technology for hydrogen energy, eventually aiming to achieve zero emissions
* To start CKD licensing production of the Chevrolet Sail at GM's joint plant in India
SAIC-GM-Wuling Automobile:
* To expand the mini vehicle business, which is currently centered on the eastern part of China, into the mid-western part of China in the future
* In addition to mini vehicles an small passenger cars, to enter the low-priced midsize passenger car market beginning with the launch of the Baojun 630
* To focus on the overseas business as well. Planning CKD production in India and other countries and to build a joint venture KD plant in Columbia (candidate country)
Alliance with FAW (China FAW Group), to jointly enter the light-duty vehicle market
* Aim to be the top OEM in the body-on-frame light commercial vehicle market in China and worldwide. Joint development, production, and sales cover SUVs/MPVs/light trucks/pickups/small buses and their related parts
* To market products under two brands - Jiefang and GM
FAW-GM (FAW-GM Light Duty Commercial Vehicle)
* Aim to move into the black in 2013 (ending in December)
* Concerning light van/light-duty bus, to introduce only high-end models
* To introduce light-duty vehicles and the technology of GMC/GM
* To utilize GM's global sales network, aggressively enter the light-duty vehicle market in the world
Production target
(in China)		 * 2015: 4.31million
  Breakdown: 2 million for Shanghai GM group, 2 million for SAIC-GM-Wuling, 310K for FAW-GM
Sales target
(including import/
sales and export)		 * 2015: 5 million
  Breakdown: 2 million for Shanghai GM group, 2 million for SAIC-GM-Wuling Automobile, 310K for FAW-GM, and 690K imported cars
Model plan ▽GM China total (centered on Shanghai GM group):
* During the next five years from April 2011, GM and its joint venture companies in China will newly introduce or remodel 60 models. GM will further enhance the introduction of SUVs
<Buick brand>
  about 12 models (to enhance its image of high-end models in China)
<Chevrolet brand>
  To expand a lineup by introducing 15 models to cover economy small cars and middle-class passenger cars (2/3box) completely. Among the 15 models, the Volt, a range-extender EV, and the Malibu, a global strategic car, have already been introduced in 2012
<Cadillac brand>
  To produce the Cadillac XTS at the Jinqiao plant of Shanghai GM starting at the end of 2012. To begin importing and selling the 2013MY ATS starting in 2013. Also planning to build a plant exclusively for Cadillac models in Shanghai.
▽SAIC-GM-Wuling:
* In addition to the current Baojun 630 (1.5/1.8-liter), to build a lineup of eight Baojun models in the future
    - GP50 platform･･･sedan/hatchback/SUV/MPV
    - GP30 platform･･･sedan/hatchback (to be launched in 2013)/SUV
    - Gamma II platform･･･Baojun Lechi (launched)
* Planning overseas production of Baojun models

Source: GM (China)/GM press release, and various media reports

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