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GM launches low-priced cars in China

Cars being targeted at drivers in China’s second and third tier cities


August 9, 2011
by Canadian Manufacturing Daily Staff

BEIJING—General Motors Co. (GM) is set to launch its low-priced sedan in China as a push for new customers in the world’s largest car market.

The Baojun 630 is being targeted at drivers in the country’s second and third tier cities outside the major markets of Beijing, Shanghai, and Guangzhou.

The car will come in three variations priced between $9,764 and $11,474.

The low-priced cars are being produced by the SAIC-GM-Wuling joint venture.

The Baojun 630 is being manufactured at a plant in Liuzhou, which has an annual capacity of more than 100,000 vehicles. The facility has adopted GM’s Global Manufacturing System (GMS) and quality standards.

SGMW, a joint venture between GM China, Shanghai Automotive Industry Corporation Group (SAIC) and Wuling Motors, was launched in 2002. It is based in Liuzhou, Guangxi Zhuang Autonomous Region. SGMW currently manufactures Wuling brand mini-trucks and minivans and the Chevrolet Le Chi.

GM’s ventures in China sold a record 1.27 million vehicles in the first half of the year, though growth slowed sharply from the double-digit pace of recent years.

GM is one of a number of car manufacturers  forming joint ventures in China, where their new brands are being sold for less than their current modelscreating competition in an already crowded auto market.