- GM will launch a new brand in China called Baojun.
- The new line will be used for small, inexpensive passenger cars.
- By 2012, the partners expect to be selling 200,000 Baojun vehicles a year.
SHANGHAI, China — General Motors, which in recent years has killed four of its eight North American brands, said it plans to launch a new brand, Baojun, in China on a line of passenger cars to be built and sold by the SAIC-GM-Wuling joint venture.
The creation of the new brand underscores the seismic shift in vehicle demand for GM, which sold more cars in China in the first half than it did in the U.S.
SGMW, as the China joint venture is called, currently markets a line of microvans under the Wuling brand that are the most popular minivehicles in China. About half of GM's China sales are Wuling-brand vehicles. Last year, SGMW sales totaled 1,061,213 units.
The JV partners plan to inaugurate the Baojun name (Chinese for "treasured horse") later this year on a new line of small, inexpensive passenger cars that will be sold through existing SGMW dealers as well as new outlets.
The first product, reportedly a small sedan designated GP5, was developed at the SAIC-GM Pan Asia Technical Automotive Center in Shanghai. Eventually, the Baojun line will be expanded to include a small MPV and SUV.
The partners are expanding their annual production capacity in China from 900,000 to 1.3 million vehicles. By 2012, they expect to be selling 200,000 Baojun vehicles a year.
Inside Line says: "Oldsmobile" was already taken. — Paul Lienert, Correspondent
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goaterguy says:
06:08 AM, 07/21/2010
Baojun = Saturn
justinlink says:
11:29 AM, 07/20/2010
@kingon
Buick is GM's most successful premium brand in China right now. It was the sole reason the brand was saved from the axe in the United States. Not sure where you get your information, but Buick isn't going anywhere, and Baojun is no replacement for it..
capoany says:
09:38 AM, 07/20/2010
Quick, add a 'Baojun Prices Paid and Buyine Experience' section to the forum!
discostu47 says:
04:55 AM, 07/20/2010
It's important to understand that the Chinese Market is quite different from the rest of the world. Yes there are quite a few risks in starting and having to market a new brand in an already crowded market (this makes it 103 different automotive nameplates available in China). BUT, GM has positioned Chevrolet as a mid-premium tier car in China, so from an image perspective (and this is where the market in China is extremely difficult is that the brand image is very important) they can't afford to sell incredibly cheap to entry level cars on that name plate (the targe price for Baojun is $5-$10k). Buick and Cadillac are the high end cars for GM in that market so this company does nothing to encroach on their sales either. I'm not as familiar with the other nameplates that GM sells under in China, but it sounds like they're trying to target a specific spot in the entry level market.
And while I'm skeptical like everyone else about adding a new brand, GM has done better than any other domestic or European nameplate in the Chinese market up until now (at a 13% market share, they're actually one of the largest auto companies in China) maybe they undestand the market better than I do.
kingon says:
10:30 PM, 07/19/2010
I think about If I might believe Banjun will new brand name is Chinese word. it will replacement to Buick. it will goodbye brand of Buick. I think Plymouth, Oldsmobile, Pontiac and Mercury are fateful forever. I think Buick will no more brand near future. I think Cadillac brand is real important brand of world.
empowah says:
10:14 PM, 07/19/2010
Sounds awfully similar to BMW, which is also "treasured horse" (bao ma) in Chinese...
albook says:
05:44 PM, 07/19/2010
"didn't they learn from the US that more brands doesn't always equal more profits?"
My thoughts exactly. I'm no marketing exec/ global economist, but do they really think spending the money to market another brand is a smart move? What vehicles would this brand have that couldn't be marketed as Chevys? It sounds like the relationship Chevy shared with Saturn. The booming economy of China can't expand for ever.
joeo26 says:
03:06 PM, 07/19/2010
didn't they learn from the US that more brands doesn't always equal more profits?