GM to invest 60 new cars in China

On April 20, General Motors announced a new round of business investment plans in China. It will invest US$12 billion in China by 2017 and launch more than 60 new and modified vehicles in China by 2018, and local production capacity by 2020. Increased by 65%.

$12 billion new investment plan

On the evening of April 20, at the press conference of General Motors 2014 Beijing International Auto Show, GM President Dan Ammann announced the company with Matt Tsien, General Executive Vice President of General Motors and President of General Motors China. Investment and Development Plans in the Chinese Market. From 2014 to 2017, GM’s joint venture in China will plan to invest approximately US$12 billion to accelerate GM’s facilities and capacity expansion and new product development.

In contrast, at the 2013 Shanghai Auto Show, GM has publicly invested 11 billion U.S. dollars in China before 2016. The investment focuses on three P:Product products, Plant capacity, and People talents.

Since 2010, China has leapt to the largest single market in General Motors. Today, China contributes one-third of global sales to General Motors every year, and General Motors is also one of the highest-selling car companies in China. Although the growth rate of China's auto market has slowed down in recent years, GM is still optimistic about the prospects of the Chinese auto industry and will continue to invest in expansion.

General Motors expects China's auto market sales in 2014 will increase by 8% year-on-year, from 22.2 million units in 2013 to approximately 24 million units. By 2020, the annual sales volume of China’s auto market will be between 33 million and 35 million vehicles, which is approximately double the US auto market at that time.

Dan Oman and Qian Huikang also looked ahead to some trends in China's auto market in the next few years, pointing out that luxury cars, SUVs and MPVs will become the main force of growth, and GM's product expansion in China will also focus on the above segmented markets. GM predicts that luxury cars will account for more than 10% of China’s auto market by 2020, with annual sales of 7 million SUVs (up to 3 times currently), and MPV sales will double to 2.8 million units in 2013; compact cars will still account for the largest share of the auto market. Annual sales of 10 million vehicles.

GM also believes that in the next six years, replacement and repetitive purchases will account for as much as two-thirds of the total market demand. At present, this proportion is only one-third, and this change is likely to bring about more. More market demand.

Launched more than 60 new models

The product lineup update and expansion will play a key role in the US$12 billion investment plan. From 2014 to 2018, GM will launch more than 60 new and modified models in the Chinese market one after another. The rhythm is basically the same between 2012 and 2016. GM’s former CEO, Dan Ixon, said that before 2016, 60 new cars and the car will be launched in China.

As mentioned above, GM’s new product expansion in China focuses on luxury cars, SUVs and MPVs. From this year until 2016, the Cadillac brand will add a new model every year. From the next five years from 2014 to 2018, GM will launch 11 different SUV models. In addition to Buick's GL8 and Wuling Hongguang series, other brands will also launch more MPV models in the future. In the largest compact car segment, General Motors will also launch more new vehicles outside the Buick Excelle, Chevrolet Cruze, and Baojun 630.

Regarding the new cars released in China this year, Dan Oman said: “In 2014, we are looking forward to creating new brilliance through the Chinese market. I believe that with the new models, we will be able to create new records again. These new cars include the first show completed at the Beijing Auto Show. Chevrolet Creo TRAX, a new generation of Cruze, Cadillac CTS, Po Chun 610 five-seat family car, and Po Chun 730 seven-seat family car."

In addition, Buick New Encore and the new GL8 luxury commercial vehicle. In 2014, General Motors will release 19 new models and modified vehicles in China.

Expansion and westward expansion

Currently, General Motors has 18 plants in eight cities in China to manufacture complete vehicles and powertrains. Some of the US$12 billion investment in the future will also be used to support the construction of five new plants by GM by the end of 2015, including four automobile assembly plants and a powertrain plant, which will lay a solid foundation for qualitative growth.

Through the gradual expansion from 2014 to 2020, the total capacity of General Motors in China will increase by 65%, from the current level of 3 million vehicles to 5 million.

General Motors will also continue to deepen its strategy for the development of the Midwest market. At present, GM’s sales in the central and western regions account for about 45% of total sales in China. In the future, GM will continue to increase its dealer network and manufacturing base in these regions, including new factories in Wuhan and Chongqing that will be completed by the end of 2015.

Technology and Innovation

In order to support ambitious growth plans, GM and its joint ventures will innovate more automotive technologies in China. Qian Huikang used the GM China Forward-looking Technology Research Center in Shanghai as an example. The center developed a magnesium alloy die casting machine and became the world’s first machine designed to develop lightweight magnesium alloy components. Magnesium alloy parts are 30% lighter than aluminum alloy parts, and each vehicle loses 150 kilograms successfully, and its fuel economy can be increased by 7%.

With General Motors China Forward-looking Technology Research Center and General Motors' joint venture Pan Asia Automotive Technology Center (PATAC), General Motors will continue to strengthen innovation and research and development. Among them, the Pan-Asian Automotive Technology Center will build a new R&D base next year.

Mr. Qian Huikang said: “The Chinese market is very dynamic and changing with each passing day. We are moving at full speed and developing together. From now until 2020, GM will always commit itself to actively participating in the Chinese market and strive to practice our long-term. The vision that has always been pursued - to design, manufacture and sell the best cars in the world."