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GM in China
INTRODUCTION In July 1994, when the Chinese authorities initiated the task of making China’s automotive sector as one of the country’s strongest industries, the market had opened up for the foreign companies.1 However, the foreign car companies were required to qualify few pre-conditions: they were required to first invest in the components industry and transfer the technology to the Chinese partner in a joint venture, where the share of the foreign partner would not exceed 50%.2 General Motors (GM), in an effort to gain access to the Chinese automotive market, invested in technical assistance projects, which facilitated technology-transfer to the Chinese automotive sector. By 1996, GM had set up a number of joint ventures to manufacture auto components in China. Eventually, GM got the permission and so, set up a manufacturing unit investing between $1billion and $2 billion to manufacture mid-sized cars in China.3 However, by 1996, the sales in the Chinese car market had been declining steadily, mainly due to the smuggling of cars into China, mostly from North Korea.4 GM, however, continued with its expansion plans, as it felt that the Chinese market had a lot of potential. Between 1997 and March 2004, GM set up a number of joint ventures to manufacture different models (Exhibit I). The models manufactured by GM in China were the variants of Buick, Chevrolets and mini vehicles like Sunshine and LZW6360. GM China also brought in other models like Opel, Cadillac and Saab to China in the form of imports. GM faced a number of problems in China; however, its optimism about China’s potential in the car market paid-off. The passenger car sector in China grew by 76% in 2003 over 2002. Industry sales totalled to 1.97 million units in 2003 compared with 1.12 million in 2002.5 The country was fast developing into the fourth-largest automotive market in the world after the US, Japan, and Germany.6 Global Insight Inc. had forecasted that Mainland China would become the world’s second largest automotive market by 2013. GM China’s sales increased by 46.4% in 2003, compared to the previous year.7 The company was also able to maintain a steady stream of earnings over the years in China. In 2003, it tripled its earnings to $437 million as compared to $142 million in the previous year.8 GM’s earnings for Asia-Pacific region, which totalled to $577 million in 2003, constituted majority of the company’s earnings.
1 2 3 4 5 6 7 8
Peters Tim, et al., “The Chinese Auto Industry General Motors and Ford Motors 1994 to 1999”, www.vwa.unisg.ch Ibid. Ibid. Ibid. Bailey John, “China’s auto industry prepares for more competition”, www.financeasia.com, March 25th 2004 Ibid. Blanchard Ben, “UPDATE 3 – Chasing VW, GM and China agree 4th plant”, www.forbes.com, February 26th 2004 “China triples earnings to $437 mln in 2003”, http://www.gminsidenews.com/forums/showthread.php?t=4217, March 15 th 2004
This case study was written by Sandeep Chaurasia under the direction of T Phani Madhav, IBSCDC. It is intended to be used as the basis for class discussion rather than to illustrate either effective or ineffective handling of a management situation. The case was compiled from published sources. © 2004, IBSCDC. No part of this publication may be copied, stored, transmitted, reproduced or distributed in any form or medium whatsoever without the permission of the copyright owner. License to use for the Class of 2012, Semester I, IBS Hyderabad. Course: Marketing Management – I
000 units.12 This production capacity of China was expected to grow over the years and most of the players in China intended to increase their existing production levels (Exhibit V). Mostly foreign players that have entered the market through joint ventures (Exhibit II). based 9 10 11 12 13 14 Thornton Emily and Roberts Dexter. based at the Eastern region of Mainland China. www. Of the foreign players. dominated the market. October 25th 2000 “Toyota plans new models for China”. which entered the Chinese market in 1985. August 21st 2003 “China’s auto industry prepares for more competition”. .com.com. also posed a serious threat to GM.000 units in 2003. Among the local manufacturers. Corolla. buses. First Automotive Works Group (FAW) and Shanghai Automotive Industry Corporation (SAIC).com. www. Land Cruiser and Land Cruiser Prado.chinadaily. were the two largest companies and provided the main competition for the foreign players.9 The government wanted to reserve the mass market for the local players.cn.4 million units in 2003. apart from the fact that the government had the final say in all decisions that were made in the industry. while around 120 domestic manufacturers accounted for the rest of the market. they had no competition from some domestic manufacturers like SAIC. the major problems being faced by foreign players in the Chinese automotive industry. By the year 2000. www. Northeast Mainland China. and passenger cars. July 19th 1999 Webb Alyssa. prices and the models that could be manufactured and sold.14 Dongfeng. Volkswagen (Exhibit III). op.11 By 2003. The company manufactured trucks. “Beijing Gives Foreign Auto Makers The Green Light”. the Chinese passenger car market was highly regulated due to the government control over production volumes. Ibid. It held a major joint venture with Volkswagen that had a yearly capacity upto 330. and the foreign manufacturers were forced to manufacture vehicles that were too expensive for the average customer. FAW. These foreign players held a major portion of the market.COM0027 2 GM IN CHINA THE CHINESE MARKET AND THE COMPETITION In the 1990s. Even though foreign players dominated the Chinese auto industry. (Dongfeng). Toyota (Exhibit IV). SAIC. Ibid. were that the consumer understanding was very limited and there were dealers looking to make money by hook or crook. “GM Retools in China”.businessweek.10 Such problems led to a slowdown of the market. had a total car production that exceeded 800. Mainland China had emerged as a key manufacturing region for the major global players and as the third largest producer of commercial vehicles behind the US and Japan with a production of 4.businessweek. with its 9% market share and with a plan to launch popular models like Crown. and Dongfeng Motor Corp. with prices that most Chinese customers were unable to afford. dominated the Chinese car market from 1995 onwards.13 FAW was based at Jilin province.cit.
set up R&D centre. However. Mass production at SGM started in 1999 with Buick sedan. Liaoning Energy General Co. Ltd.shanghai. To penetrate the Chinese market.17 In April 1997. GM’s first major joint venture in China was with SAIC in June 1997.tdctrade. “GM. to form the Jinbei GM Automotive Co.15 Dongfeng had a major joint venture with Citroen. SAIC merge plans”.com “Transportation”. The company felt that the knowledge of the domestic industry as well as the distribution channels of the domestic partners would come handy for GM’s operations. a French automotive manufacturer.businessweek. GM entered China to manufacture automobiles. www.com/bwdaily/dnflash/ feb2002/nf2002024_2258.16 This relaxation of tariffs in the Chinese car market was expected to be extremely beneficial to the customers. Roberts Dexter and Webb Alysha.. was the third largest auto manufacturer in China. 15 16 17 18 19 20 “China’s auto industry prepares for more competition”.cit.gmchina. making such cars more affordable for the Chinese customers. Jinbei Automobile.6% over the previous year. while Jinbei Automobile had a 25% stake.300 autos in 2003. Chevrolet Blazer. based on the model produced in Oshawa. as it was expected that the array of choices would increase and the prices would fall. a 50-50 joint venture that formed the Shanghai General Motors (SGM) (Exhibit VI). August 3rd 2004 . In order to expand their portfolio in China. Canada.18 PATAC was the first joint venture for automotive engineering and design centre in the Asia Pacific region. customer care and innovation. In the joint venture. GM entered into a number of joint ventures with domestic manufacturers.com. Canada.htm?chan=search. Also the tariffs on imported cars were expected to fall from 70% to 80% of the list price to 43% to 50%.20 The objective of this venture was to start the production of the variants of the sports utility vehicle. The Completely Knocked Down (CKD) kits were shipped from Tilsonburg. February 4th 2002 “Transportation”. to SGM in large quantities. Central Mainland China.cit. GM’S JOINT VENTURES IN CHINA Leveraging on its extensive global resources to deliver the best combination of technology. Analysts opined that when China would eventually join the World Trade Organisation (WTO).gc. auto components. The remaining 25% was jointly held by the Liaoning Development Group. www.19 Among its achievements was the reengineering of the Buick Regal. the sales of Buick sedan increased by 81. op. GM entered into another joint venture with the Shanghai-based van manufacturer. GM had 50% stake ($ 230 million). op. in 1998. http://my. GM felt the need to focus on R&D and formed a $50 million 50-50 joint venture with SAIC to form the Pan Asia Technical Automotive Center (PATAC). and the Shenyang Automotive Industry Asset Management Co. http://www. it was expected to make life very difficult for the car manufacturers as this was expected to lead to heightened competition. The company produced about 470.COM0027 GM IN CHINA 3 at Hubei province. In 2003. “Chinese Buyers: In the Driver’s Seat”. extend financial services and provide after sales services. Buick Excelle and other products for Shanghai GM. prices would fall and then the cars would become affordable to the common man.com “GM in China”.
GM invested $3. “GM in China”. April 9th 2001 “Transportation”. op. GM’s US-based automotive parts subsidiary to customers in Mainland China. along with its 21 22 23 24 25 26 27 “GM in China”. the situation would change due to the expected relaxation of government rules and policies. In October 2003.businessweek. Guangxi Zhuang Autonomous Region.com/News-2001/February-2001/ February-07-02-p5. (Wuling) joint venture. and over 400 after sales service centres across China. op.21 It was established to ensure the quick delivery of genuine GM parts from AC Delco. In 2001.taipeitimes.2 million in the venture. This led to General Motors Acceptance Corporation (GMAC) planning its entry in China in 2001. “A Chinese Minivan Maker with a U. especially that of Shanghai GM (SGM).cit. November 16th 2003 .org. By 2004. http://www. in Shanghai’s Waigaoqiao Free Trade Zone in 1999. GM established another joint venture in South China’s.COM0027 4 GM IN CHINA As part of its plan to increase the size of its distribution network in China.htm. which would make the obtaining of licenses for financing companies easier.com/News/biz/archives/2003/11/16/2003076090. By January 2001.24 This joint venture produced Sunshine. GM felt that with China ready to enter the WTO. This interest was due to the fact that the size of this market segment was 110. GM became the first foreign automaker to apply for a license to handle vehicle financing in China.htm. GM set its eyes on the mini-vehicle segment of China’s automotive industry.S Buddy”.cn/english/2001/Oct/20963. October 2001 “GM to offer financing in China”.000 Chinese Place Deposits For Buick Sail”. as against 80% in the West. GM was able to build up a strong distribution network in China. op. February 7th 2001 Webb Alysha..26 However. Ltd. LZW6360 and the Chevrolet Spark. GM also set up a wholly owned parts distribution center in August 1999. http://www..com/bwdaily/dnflash/apr2001/ nf2001049_328. The venture was formed by SAIC. SGM also became the first Chinese automaker to adopt a distribution system in which the retailer sold cars to the customer and developed a relationship to handle the services and other needs of the customers. Ltd.cit. At that time only 12% of the private car sales were financed in China. “More Than 15. GMAC. GM and Liuzhou Wuling Automotive Co. “GM Aims at Joint Venture in Chinese Car Financing”.23 For this.000 mini vehicles in 2000 and the company forecasted the market sales to be at least 120. which was derived from GM Daewoo’s Matiz. http://www. GM saw a sales driver in the car finance sector. SGM had a distribution network of 76 sales outlets and 62 authorised after sales service centres across China.22 SGM’s well-established network in China. GM set up the GM Warehousing and Trading (Shanghai) Co.autointell. http://www.htm?chan=search.25 After finding that car finance was a largely untapped market in China.china.000 mini vehicles in 2001. the joint venture evolved with an extensive network of over 400 retailers in 29 provinces and municipalities. and was called the SAIC-GM-Wuling Automobile Corporation Ltd.cit. provided customers with high quality products and after sales service. Its purpose was to explore the opportunities to bring to China the latest automotive financing schemes.27 The company’s financing subsidiary.
32 However. Chevrolet and Wuling brands. “Chinese partner raises stake in unprofitable Jinbei-GM venture”.7 million Yuan. the amount of automation at the plant was still far below the automation standards of GM’s other plants in the US and Europe.com/ news/2004/02/26/182301. applied to China Banking Regulatory Commission. It was the sole unprofitable venture among all of the motors’ joint ventures in China. its main Chinese partner.000 vehicles – which were sold under the Buick. like the $800 million they spent on the Shanghai plant. no timeframe for the application process was revealed. July 7th 2001 . http://www.com.000 units a year. they still had to deal with a number of problems in China.28 THE PROBLEMS Even though GM had set a game plan of entering into a number of joint ventures in China to have a presence across all segments of the Chinese automotive industry. Thus. GM invested over $2 billion in China and had a combined manufacturing capacity of 530. This led to the two plants using twice as many workers as compared to similar Western facilities.forbes.GM’s sales surge in accelerating China car market”. This was proved by the deals GM made in China and also by the large amounts that they spent in setting up and maintaining facilities.asp?article=3869&n=156. February 26th 2004 Eisenstein Paul. www. Jinbei GM recorded a loss of 32.29 It sold only 3. or $3.html. op. with only one robot.000 employees in China and had also set up a few other joint ventures. “UPDATE 1 .9 million. This high level of staffing. One of the main problems was the poor performance of its joint venture with Jinbei. The Jinbei GM plant.theautochannel. In the first half of 2003.cit..thecarconnection.30 The main problems being faced by the venture were its weak distribution network and the fact that the products it manufactured had a very limited appeal in the Chinese market. However. SAIC was considering to take over Liaoning province’s share in Jinbei GM to address these problems. GM said that the managers from Shanghai GM would oversee day-to-day operations of the venture. October 16th 2003 Ibid. GM had about 10.COM0027 GM IN CHINA 5 Chinese partner Shanghai Automotive Group Finance Co. http://www. By March 2004.34 Though the Shanghai plant added a few pieces of automation in the welding areas.iht. 28 29 30 31 32 33 34 “GM in China”.33 Another problem faced by GM was that negotiators of the Chinese joint venture partners had a reputation for being tough. 175&sid=175. www. in February 2004. it was GM that signed an agreement to sell half of its 50% stake in Jinbei to SAIC. to get a permission to become a financing authority for car finance in China.289 Blazers in 2003. also had a low level of automation. “China: GM’s Next Big Thing?”. Blanchard Ben.com/index.com Ibid. which was about 10% of its capacity of 30.31 In October 2003. “GM’s Chinese Joint Venture Partner Buying Into Struggling SUV Venture in China”. The other 50% of the venture held by four smaller shareholders would be taken over by Shanghai GM Co. GM and its joint ventures offered one of the widest portfolios of products among the foreign manufacturers in China.
39 Other partnerships also had an influential role to play in GM’s fortunes in China.just-auto.43 For the first quarter of 2004.com/company/investor_information/earnings/hist_earnings/04_q1/ index. inspite of its continued losses in the overall sales of Blazers in 2003 increasing by 2.710 Vehicles”.44 35 36 37 38 39 40 41 42 43 44 “China: GM’s Next Big Thing?”. http://www1. The company’s officials admitted that they invested more than necessary amount in the facility. This helped GM’s global automotive earnings to increase from $546 million to $611 million in the previous year. which could produce merely 100.000 minivans and sedans annually. April 20th 2004 . which had earlier been the major markets for GM. Since 1999.com. inspite of the lower production in North America and Europe.htm.cn/ce/doc/cenk/200403171880.gmchina.9% over the previous year.41 It also introduced a concept vehicle in China in April 2003 called the Kunpeng CAV.52 billion in the Sino-US joint ventures.42 Even Jinbei GM. GM launched at least one new model every year with its low-cost ‘Sail’ model catering specifically to the needs of the Chinese customers. which sold over 36.188 units for the mini-vehicle joint venture40 with the Chevrolet Spark mini-vehicle.35 The problems at this plant also forced the company to give up the production of two new Sport Utility Vehicles – Ahoe and Trailblazer in China. but was very different from the conventional minivehicle design in China.china-embassy. http://www. reflected the Chinese government’s interest in keeping as many citizens as possible employed at a time.com “GM Investment in China Successful”.COM0027 6 GM IN CHINA however. GM China recorded an increase in the earnings of about 24% over the first quarter earnings of 2003. the unprofitable joint venture of GM in China. just 23 months after the formation of the joint venture. when the rapid switch to capitalism was causing massive displacement across the country.cit.36 THE ROAD AHEAD FOR GM GM had a total investment of $1. when it produced its first Buick. op. “CHINA: Investment gains help big jump in Shanghai Automotive Q1 net profit”. February 15th 2002 Ibid. SAIC-GMWuling recorded an increase in the sales by 22.6% in 2003. was able to add the three-litre Chevrolet Blazer SUV to its Blazer line-up. The investment in China paid off.org/eng/zt/wto/t36936.gm. Pan Asia Automotive Centre (PATAC) also added to the success of GM in China by successfully re-engineering the Buick Excelle for Shanghai GM. http://www.cei. http://www. January 5th 2004 Ibid. compared to that of 2002. www.gov.com/chinese/news/ ctl?action=press_body&press_id=281.html. particularly enjoying a great amount of success. April 21st 2004 “GM sales in China rises 46% in 2003”. with the level of sales rising to 180. which specifically catered to the typical Chinese mini-vehicle buyer.8% in 2003. “GM – Earnings: Hist Earnings”.37 Shanghai GM set a record for the Chinese auto industry. Ibid. as it created a win-win situation for both GM and the Chinese auto industry.38 Shanghai GM was a major contributor to GM’s success in China as it was able to increase its sales. mainly due to the success of its Buick Regal and Buick Excelle models by 81. “General Motors Drops Plans to Build Two SUV Models in China”.htm. www. January 8th 2004 “GM Celebrates Another Record Year in China Sells 386.000 models in 2003.automobilemag.
October 19th 2003 .46 GM China took up the initiative of bringing out a hydrogen fuel car and hoped that they would be able to enlist the Government of China in helping them to promote these cars.com. “GM to Export Autos to China”. In 2003.shtml. that were required by the WTO. “Automaker predicts Japan will be outpaced in global sales”. mainly due to the success of the imported Opel and Saab models. Opel Vectra in March 2003 and also signed an agreement in November 2003 for the roll out of Cadillac luxury vehicles in China for 2004. Buicks and other GM vehicles valued at $1.msn. http://msnbc. GM’s focus on China would continue to grow over the years.cit.45 By 2005.COM0027 GM IN CHINA 7 The growing market for imported cars in China provided a great opportunity for GM. November 12th 2003 “GM wants China to help promote new car”.47 Though people in Mainland China had just started buying regular cars.com.710 Vehicles”. The company announced in 2003 that it intended to export its cars to China’s vast market.com/trade_/ctm94/gm_export_autos_china. 45 46 47 48 49 “GM Celebrates Another Record Year in China Sells 386.people.3 billion.48 This was expressed by the company’s Asia-Pacific president.045 units. op. if special hydrogen filling stations were set up alongside new gas stations. The Chinese government had authorised the granting of trading and distribution rights in 2002. http://english. GM was expected to export thousands of Cadillacs.cit. http://www.710 Vehicles”. as China moves towards becoming the dominant player in the Asian automotive industry. The alternative fuel cars were scheduled to be put to test on a racing circuit. Fredrick Henderson. GM was also able to introduce Europe’s most popular mid-size sedan. but would be commercially possible only by 2010. November 19th 2003 “GM Celebrates Another Record Year in China Sells 386. GM also had major expansion plans for its Shanghai GM and SAIC-GM-Wuling joint ventures. who predicted that. on the outskirts of Beijing on November 18th 2004. GM was banking on China jumping straight into alternative fuel cars.cn/200311/19/eng20031119_128573.htm. the sale of imported vehicles in China stood at 2. op.bizasia. China would overtake Japan as the Asia’s largest automotive market. by 2008.49 Thus.
Shanghai GM Dong 2004 Yue Automotive Powertrain Co. Ltd. BMW MG Rover MMC Kia Nissan Peugeot Dongfeng Citroen Motor Co. the mini-vehicle market of China. SAIC and GM China SGM.com . Hyundai (BAIC) MMC GM Brilliance Toyota China Automotive Renault Holdings Ltd. (Wuling) SGM Dong Yue 2003 Motors Co. Ltd Source: www. Making engines for vehicles manufactured in China by GM Exhibit II Sino-Foreign Joint Ventures Audi First Automotive Toyota Works Group Mazda (FAW) VW Daihatsu VW GM Shanghai Automotive Industry Corp. Liaoning Development Group. GM and Liuzhou Wuling To increase GM’s focus on Automotive Co.com Jinbei Automobile.financeasia.COM0027 8 GM IN CHINA Exhibit I GM’s Manufacturing and Design JVs in China Joint Venture Name Shanghai GM (SGM) Pan Asia Technical Automotive Center (PATAC) Jinbei GM Year of Partner(s) Formation 1997 Shanghai Automotive Industry Corporation (SAIC) 1997 Shanghai Automotive Industry Corporation (SAIC) 1998 Purpose Manufacturing the entire range of Buick products For automotive engineering and design of GM’s various models in China Manufacturing the variants of the Chevrolet Blazer SUV SAIC-GM-Wuling 2001 Automobile Corporation Ltd. SAIC and GM China Production of the Buick models in addition to those of SGM. Hyundai Honda MMC Source: www. Liaoning Energy General Co and the Shenyang Automotive Industry Asset Management Co SAIC. Chrysler BeijingMercedes Automotive Industry Holding Co.gmchina. (SAIC) Daewoo Suzuki Chongqing Chang’an Ford Automobile Co. SGM.
autoindex.7% Tianjin Toyota Forging Co.COM0027 GM IN CHINA 9 Exhibit III Volkswagen in China The Volkswagen Group entered China through two production joint ventures. Other local universal joints company: 4. 27.. Shanghai Volkswagen and FAW Volkswagen. Tianjin 1. 1996 US$ 248 million Toyota: 50%. The major models that it sold in China were Santana. Gol and Polo through Shanghai Volkswagen and Jetta.3%..autointell-news.. 1997 Approx.: constant velocity 5.: 50% compact cars May 16. .org Exhibit IV Major Toyota Ventures in China Name Of Venture Tianjin Toyota Motor Co.. 25. Automotive Industrial engine casting (Group) Co. Volkswagen had over 16. Compiled by the author from www. Bora.. Volkswagen was also considering starting the production of its Skoda model at the Shanghai Volkswagen Joint Venture. Tianjin Machining and Auto Parts Co. Ltd.7 million vehicles from 1985 to 2002 in this country.. Ltd. 230 Toyota: 90%.. and sold over 2. (VWTS).5l engines.com and www. Ltd. Ltd. 2000 Approx. 1995 Approx. Ltd. (TTME) Incorporated Capital Shareholders Purpose June 12.: 50% components Tianjin Fengjin Dec. Ltd.. Toyota’s new Ltd. 240 Toyota: 100% million Yuan Constant velocity universal joint castings. it was a majority shareholder in a gearbox joint venture in Shanghai called Volkswagen Transmission (Shanghai) Co. In addition.000 employees in China. million Yuan Automotive Industrial assembly of (TFAP) (Group) Co.000 sets/year for Charade and for export Contd. US$ Toyota: 50%.. (TTFC) Feb. Passat. Audi and Golf through FAW Volkswagen. Tianjin Production of 100 million Automotive Xiali Co. 400.3l/1. (TTMC) Tianjin Toyota Motor Engine Co. Ltd.
1997 140 million Parts Co. Procurement and sales of imported replacement parts for Toyota vehicles Sichuan Toyota Co... Yuan (TJAC) Toyota: 30%.co. Dec.1 billion yen Toyota: 100% Toyota Motor (China) Investment Co. Ltd. etc.: 5%. sales. (TMCI) July 2001 US$ 30 million Toyota: 100% Toyota Motor Warehousing & Trading (Shanghai) Co.jp . Ltd. Toyota Tsusho Corp. 2001 US$ 2.. 5.000 vehicles/year including Hijet Small Bus Motor “Coaster” specially developed for China Technical consulting service for research. Sichuan Luxing Chechang: 50% Toyota Motor Technical Center (China) Co. and local production of vehicles and automobile components Providing marketing assistance for advertising. 10. Ltd.2% Steering components for 240. Ltd. (TTCC) Feb. and public relations. 1998 US$ 67 million Toyota: 45%. Other local company:44.5 million TMCI: 100% Source: www. Ltd.8%. 1998 1.COM0027 10 GM IN CHINA Tianjin Jinfeng Auto July 29. training of sales and service employees.. Tianjin Automotive Industrial (Group) Co.: 25. Ltd.. (SCTM) Nov.toyota.000 vehicles/year including Charade Propeller shaft for 110.. development.
a sedan with a smaller engine. 2003.gmchina. at Auto Shanghai 2003. was introduced.com Exhibit VI A Brief Overview of the Product Portfolio of Shanghai GM • • • • • • • • • In April 1999. Ltd. Shanghai GM unveiled the Buick Excelle. the Buick GL8. In August 2000. 2002. Shanghai GM began exporting the GL8-based Chevrolet Venture to the Philippines. Shanghai GM introduced the Buick S-RV recreational vehicle.financeasia. was added to the portfolio. the newest product from Shanghai GM. General Motors Corp./Mazda Peugeot S. In May 2000. the Buick Regal midsize sedan. DaimlerChrysler AG Volkswagen AG Ford Motor Co. Source: www. Source: www. Shanghai GM began regular production of three models of midsize luxury sedans: the Buick Xin Shi Ji (New Century). In October 2001. BMW AG Fiat SpA Ssangyong Motors . On April 19. Shanghai GM announced that it had secured a contract with GM’s CAMI joint venture in Canada to export engines beginning in 2003. came off the production line.com Domestic manufacturers Hyundai Motor Co. the Buick G. In November 2002. Buick GLX and Buick GL. In November 2001. Shanghai GM’s first small car. Ltd. Shanghai GM launched the driver-oriented Buick GS sedan and the first executive wagon made in China. the Buick Sail.A.COM0027 GM IN CHINA 11 Exhibit V Production Capacities of Car Manufacturers in Mainland China for 2003 Production Capabilities of Car Manufacturers in Mainland China Planned capacity 1800 1600 1400 1200 1000 800 600 400 200 0 Existing capacity Toyota Motor Corp. In December 2000./Kia Honda Motor Co. Nissan Motor Corp./Daihatsu Mitsubishi Motors Corp. its first lower-medium sedan. Suzuki Motor Corp. On December 26.
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