Shanghai GM is still developing its test ground project with 1.6 billion yuan of investment. After the project is finished, it will be able to further improve the R&D capability of its research center in China.
After the launch of Buick Regal and Chevrolet Cruze, in the coming months Shanghai GM will launch several new car types including cars developed by its research center in China.
Shanghai GM announced it would continue the cooperation with current suppliers and sellers according to existing contracts, and had made plans to maintain its supply chain (including overseas suppliers) to guarantee the company could fully meet the car demand of the market. By now Shanghai GM has over 600 domestic and overseas suppliers and more than 600 sellers.
As for whether the maintenance of its car products on the Chinese market will be influenced by the reorganization of GM, Shanghai GM promised its users would continue to enjoy the company's sound post-sales services.
Over ten years ago, Shanghai GM made a miracle by making profits in the same year when it began to produce cars. It has already developed full competitiveness on the Chinese market. By now its total sales on the Chinese market has reached almost 2.6 million cars.
Shanghai GM declared the company attained "adequate cash flow and strong financing ability." In fact, many banks are competing to grant Shanghai GM loans.
12 years ago, Pan Asia Technical Automotive Center, a joint venture between GM and SAIC, as well as the first joint venture automotive research center, was founded in Shanghai. Shanghai GM said in the future the company's use of technology would not be influenced by the reorganization of GM, for the technology it was using belong to GM's global technical management center. According to the reorganization plan that GM has submitted, this center will be packed into the new GM. According to the agreement between Shanghai GM, GM, and Pan Asia Technical Automotive Center, Shanghai GM and Pan Asia Technical Automotive Center will be able to fully use this technology and receive global technical support.
In fact, Chinese consumers have not lost confidence in GM products because of its troubles in the US market. Car sellers in Shanghai also said that although GM was on the edge of bankruptcy, the auto market in Shanghai has hardly been influenced by the news. The sales of GM cars in Dongchang Auto in the first four months of this year grew nearly 20% year on year.
After the restructuring, China will be more important for the new GM. On one hand, GM’s overseas assets and operation organizations are not included in the current bankruptcy protection application. GM’s business and joint ventures in China will all remain normal, and the new GM can never afford to lose the Chinese market.
During the global recession, the Chinese car market has maintained sound growth. According to latest figures from Shanghai GM, its cars sales in the first five months of this year totaled 0.228 million cars, and the sales volume in May alone reached 56,000 cars, growing over 50% year on year and reaching a new high since 2008.
Shanghai GM's car factory is producing its major car series. Due to high demand on the domestic market, it has made full use of almost all of its production lines since January this year. Recently, besides existing car types, the factory has begun to produce the Buick LaCrosse, which will be launched on the market soon.
According to the restructuring plan, GM will sell its good assets to the new GM, which is dominated by the US Treasury. The new GM will focus on the development of four key brands, including Buick, Chevrolet, Cadillac, and GMC, the first three of which are GM’s main brands on the Chinese market. In May, the sales of Buick cars by Shanghai GM reached 37,575 cars, and that of Chevrolet reached 17,889. Industry analysts believe these three brands will not be influenced by the bankruptcy protection, and in fact, they will enjoy more investment. With China's car market enjoying the most rapid development in the world, and ranking as GM's second largest market in the world, China will receive more support from the new GM.
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