Why does Universal no longer come to an end?


From now on, Gan Wenwei and other general Chinese executives may have to travel to Changchun on a regular basis in addition to their office in Shanghai.

Yesterday, China FAW and General Motors formally announced the establishment of a light commercial vehicle company, with each party accounting for 50% of the shares. The project has 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.

The joint venture with FAW is the first single expansion in the world after the birth of New GM. FAW will be the world's top three cars (Toyota, GM, Volkswagen) have been wiped out.

At the same time, it also proclaimed the complete history of GM's "monogamy" in China.

I cannot help but wonder why GM is no longer "finishing one" in China. Because at one time, the only partnership between GM and SAIC was seen as a huge premise for GM's success in China.

Now that the premises have changed, will the results change?

Regardless of SAIC's psychological feelings, he insisted on marrying FAW, which is behind the ambition of GM's expansion in China.

According to the GM's global strategic plan, its goal in the Chinese market is to have a 15% market share.

Currently, GM has two vehicle joint ventures in China, Shanghai General Motors and SAIC-GM-Wuling, which produce passenger cars and mini-vehicles respectively. GM’s current market share in China is between 11% and 13%, and there is still a certain distance from the 15% sales target.

Shanghai GM and SAIC-GM-Wuling have already become the first in the market in their respective market segments, which also makes it difficult for GM to further expand its market share.

No other newcomer, GM's future growth in China will be difficult to significantly expand. Ever since, GM has this idea of ​​remarriage.

General Motors had previously lacked resources for commercial vehicles and had no chips to work with globally renowned commercial vehicle manufacturers.

At present, there are not many domestic commercial vehicles that are suitable for general-purpose joint ventures: Dongfeng Commercial Vehicles has been included in the joint venture with Nissan, and cooperation negotiations with volvo are underway. SAIC also enters the heavy truck industry through cooperation with Iveco.

According to the author's understanding, after 2000, General Motors once had contact with Jiangling Motors, Yuejin Auto, SAIC, and JAC, but they all ended without results.

Therefore, the joint venture with FAW has become the most viable option after “around a big circle”.

However, it should be pointed out that the market status of FAW Hongta is not strong. Currently, it ranks sixth in the domestic light truck market ranking, and only has a combined production capacity of 150,000 vehicles per year. Another steam Hongta also has micro-facility, light passengers, MPV, SUV series products, which will overlap with some of SAIC-GM-Wuling's product line.

However, the biggest contradiction is that after the joint venture between GM and FAW, will there be subtle changes in the close relationship with SAIC?

In memory, after GM cooperated with SAIC, it once said that it "cooperated with only one company" and published "Five Commitments."

Before GM did not cooperate with SAIC, the entire vehicle project in China was not smooth, and even met with great twists and turns, or failed. No matter whether it was the "Opel project" in Guangzhou that year or the later "Golden Cup GM," it was either a failure or an exit. It is the cooperation with SAIC that has made GM proud in China and has been able to expand its land quickly.
From the swearing by the Shanmeng League to the vicissitudes of life, will GM be trapped in the future and be hurt by circumstances? It is worth paying attention to the demonstration blueprint of how North-South cooperation will develop in the future.

View related topics: Joint venture hot car


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