General Motors Prepare New Premium Brand in China

General Motors continues to strengthen its base in China with local partner SAIC and Wuling.

Third merged company plans to increase production capacity as well as preparing for a new trademark for the target to a higher segment.

With this expansion, the existence of GM in China is getting stronger. This step is both the major key to the company's post-crisis recovery. The production capacity of the three brands in Liuzhou will be increased to 33 per cent to 800,000 units per year and was effective in the second half of 2012.

All three brands also will increase the plant capacity from 300,000 units Qingdao per year to 510 000 units per year in the near future.

Yang Jie as General Manager Sales of SAIC-GM-Wuling, said passenger car would develop into one of three main business companies this year. These measures include the development of the minivan model and expanding export markets.

Until now, three companies produce two brands, namely Wuling light trucks, minivans, and the Chevrolet Spark. Wuling is a company owned by government red plate on the Provinces, Guangxi Zhuang.

Last year, SAIC-GM-Wuling sold 1.1 million cars and continue to show improvement up to 66 percent this year. This amount is contributing more than half of GM's total sales in China reached 1.8 million units.

SAIC-GM-Wuling is currently exporting its products to Brazil sold under the Chevrolet label. Their products also entered the Indian market and become part of the realization of GM's market expansion in collaboration with SAIC. Within this cooperation the three brands, GM's shares 44 percent, 50.1 percent of SAIC and Wuling Motors 5.9 percent.