FAW and GM Holding Enterprises Cheer for Commercial Vehicle "Cake"


"Increase investment in the Chinese market and continue to expand business in China." In July this year, Han Desheng, President and CEO of General Motors Corporation, said when General Motors was established and operated internationally. On August 30, which was only less than two months ago, China FAW Group Corporation and General Motors Corporation announced in Changchun that "FAW-GM Light Commercial Vehicle Co., Ltd." was officially listed. FAW and GM hand in hand, intended for the commercial vehicle market.

In the newly established FAW-GM, China FAW and General Motors each have a 50% stake, with a total investment of 2 billion yuan and a registered capital of 1.2 billion yuan. The term of the joint venture is 30 years, and the joint venture company is registered in Changchun City, Jilin Province. FAW Harbin Light Vehicle Co., Ltd. and FAW Hongta Yunnan Automobile Manufacturing Co., Ltd. are subsidiaries of the joint venture company.

It is reported that the new joint venture FAW-GM will be mainly engaged in research and development, production, sales, warehousing, export and logistics of light trucks, light buses and related assemblies and parts. Existing products and future new products based on the continuous development of FAW brand products still use the FAW Liberation brand.

Although the initial planned production capacity is only 200,000, some industry insiders estimate that according to the FAW and GM plans, the new joint venture will eventually become the world's largest light commercial vehicle project. For this cooperation, Luo Ruili, President of GM International Operations, continued to emphasize the word “win-win”. Xu Jian, general manager of China FAW, stated that both parties have a high degree of consensus on the importance of the light commercial vehicle market.

It is understood that light commercial vehicles have always been FAW's shortcomings, and there has always been a lack of clear planning and contributing models. With the rapid rise of domestic commercial vehicle companies such as Dongfeng Automobile and Beiqi Foton, commercial vehicles started to fail to secure their status as FAW. Especially in the light truck field, FAW Harbin and FAW Hongta have sold less than 80,000 vehicles in 2008. Obviously behind Beiqi Futian and Dongfeng Motor.

“After the joint venture, the comprehensive competitiveness of FAW Light Truck will be rapidly improved. At the same time, FAW will be able to fully participate in the competition of the global light vehicle market by leveraging on GM's globally efficient marketing service network.” Xu Jianyi said. In this marriage, the benefits of the new GM may be even greater.

Unlike other international auto giants such as Volkswagen, Toyota, and Honda, which have joint ventures with two companies in China, GM has only been a SAIC partner for many years. Shanghai General Motors, which was founded in 1997, focuses on the sedan field, and SAIC-GM-Wuling was established in 2002. Mainly attack the mini commercial vehicle market. Analysts believe that the successful models of "North and South Volkswagen" and "North and South Toyota" provide GM with lessons to be learned. FAW's powerful government resources and channel network also have a strong attraction for GM.

For GM, which has regarded China as the most important market in the world, it is necessary to rapidly expand its market share in China to make up for the shrinking sales of other countries' markets. It is the most urgent task to further explore the Chinese market and reinforce the fulcrum of China's business.

“The sales of light commercial vehicles in China account for 52% of global sales, and this proportion is still growing. We hope to achieve better sales in this market through the newly formed joint venture company through cooperation with FAW Group. "Dade Wei, general manager of FAW-GM, said that his previous position was director of the General Motors Commercial Vehicles Research Department.


View related topics: Joint venture hot car


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