Bloomberg Businessweek

Where GM Is Moving Down-Market

With models starting at $6,000, its Baojun brand targets buyers in China’s less affluent interior
Newly built Baojuns lined up at GM China’s factory in Liuzhou

For much of the past decade, sales of global automakers were buoyed by demand from China, whose residents have eagerly snapped up locally produced versions of pricey foreign cars such as Daimler’s Mercedes-Benz, Volkswagen’s Audi, and BMW’s namesake sedans. Yet General Motors Co. has not only fared well with its premium-priced Buick line, it’s killing it with Baojun, a made-for-the-mainland brand that sells for as little as $6,000.

There was a method to the down-market move. GM figured the next wave of car buyers in China would come from the smaller cities, especially in the interior of the country, where the middle class is growing and people are buying more cars. Baojun sales are up tenfold since 2013, to 1 million cars last year,

You're reading a preview, sign up to read more.

More from Bloomberg Businessweek

Bloomberg Businessweek4 min read
Big Weed Has a Grass Ceiling
When Nancy Whiteman, 61, founded her marijuana edibles company, Wana Brands, almost a decade ago in Boulder, Colo., the legal industry was relatively diverse and dominated by local startups. It helped that Wall Street banks and institutional investor
Bloomberg Businessweek13 min read
The Zillion-dollar Convenience Store
Seven years ago, Jeff Bezos started an ambitious effort to rid the world of checkout lines. Has Amazon Go invented a new retail paradigm or a ridiculously expensive way to sell lunch?
Bloomberg Businessweek7 min read
Management Lessons From The Moon
Five things we can learn from how NASA put astronauts on the moon and brought them safely back 50 years ago