SAIC GM Wuling CEO Hu Jun: We Do Not Give up Mini Commercial Vehicles
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As the world's only general-purpose production base for mini-commercial and passenger vehicles, SAIC-GM-Wuling is changing its position in the GM system. The Liuzhou-based automaker is based on mini-trucks, minivans and mini-cars in the Chinese mini-car market. According to statistics from the China Association of Automobile Manufacturers, SAIC-GM-Wuling ranked second in the domestic mini-vehicle market after Chang’an. From January to September, its sales reached 168,700 units, which accounted for 25% of the mini-vehicle market, gradually widening the distance between Changhe and Hafei. The general manager of the company, Shenyang, said that according to the established plan of the board of directors, the entire company is formulating new strategies as related products of the Chevrolet brand of GM continue to be introduced into Liuzhou. According to information from SAIC-GM-Wuling, the output of Chevrolet brand passenger vehicles will reach 300,000 by 2010, and the output of Wuling-brand commercial vehicles will reach 200,000, which is 230,000 this year. Two years after the U.S. General Participation (34%), the role change of SAIC-GM-Wuling has emerged. On October 29, General Manager Hu Jun of SAIC-GM-Wuling accepted an exclusive interview with this reporter. QQ is not our only competitor "21st Century": After Spark's listing, it has been trapped in market sales. The industry has a variety of speculations. What is the real reason? Hu Jun: At present, the localization of Spark is about 40%, subject to quota restrictions, and the import volume of parts and components cannot keep up, among which the stampings are all imported, and our production capacity is limited. Production can not be greatly increased, thus affecting sales. However, by the end of this year, the localization rate of Spark will rise to a new level, and the situation in terms of output will change greatly. This year's production and sales are expected to be around 10,000. The bodywork will also be localized next year, and our output will also expand. "21st Century": There is also a mini-car QQ with Spark, and its appearance also affects our sales? Hu Jun: QQ is our competitor, but it is not the only competitor. Now Changan, Hafei, Changhe, FAW Jiabao have the same level of products. Spark's goal is the entire mini-car market. We want to become a leading domestic and internationally competitive manufacturer in China. As the mini-vehicle market is the earliest market in the country, competition in this market will become increasingly fierce. This year our price adjustment is aimed at this market, not which model. "21st Century": This year, the impact on the mini-car market is minimal, and major manufacturers are starting to accelerate. Will SAIC-GM-Wuling expand the production capacity of this mini car? Hu Jun: We are already building a large-scale passenger car production plant. After the production line is installed in March, it has already started normal operation. Now it is a single-shift operation, and production shifts will be increased later. Among them, the assembly line has been built, and the engine and painting shop are under construction. By 2010, the production of our mini-cars will reach 300,000 vehicles, and at the same time there will be more than 15% of exports. "21st Century": So in terms of new products, what kind of planning does SAIC-GM-Wuling have? Hu Jun: In terms of passenger vehicles, we will use the technical support of the Pan-Asian Technology Center to launch 1-2 new models, which may involve the production of small cars with displacements of around 1.3-1.6. The entire product plan is placed under the framework of the entire common system. In these aspects, GM has a relatively large advantage. We can introduce it at a proper time and then carry out secondary development and develop our own products. The mini-vehicle market is about to be divided into two camps: “21st Centuryâ€: In the system of General Motors of the United States, only the production of mini-vehicles in Japan and China, what role does SAIC-GM-Wuling play in the general plan? Hu Jun: General Motors itself does not have a company that produces mini-cars. It is only through the controlling of Suzuki, which produces miniature cars. In the general system, Chevrolet is a fairly big brand and has a global plan. Our Chevrolet brand is also part of this plan. At the moment we only produce Spark and it is the second mini-car production base. Since Suzuki does not produce mini-commercial vehicles, we are the first in the general-purpose system to produce miniature commercial vehicles and mini-cars. s company. "21st Century": SAIC-GM-Wuling enters the mini-car industry and is planning for GM? Hu Jun: For miniature car manufacturers, it is no longer possible to extend the product from the low end. But if you want to continue expanding, you can only go upstream. At the same time, going from a commercial vehicle to a passenger car is also a test for manufacturers in terms of technology and quality. The SAIC-GM-Wuling Executive Committee is our highest decision-making body. It consists of two SAIC representatives, one GM representative and one Wuling representative. Therefore, any strategy concerning the company is planned by the shareholders of the three parties and follows the interests of the shareholders of the three parties. "21st Century": So the main business of the original SAIC-GM-Wuling is a minivan. Now whether it will be transformed into a mini-cab to give up the mini-commercial vehicle? Hu Jun: Entering mini cars is a trend in this market, but we will not give up commercial vehicles. Commercial vehicles will still be our business focus. This industry has experienced relatively full competition, is relatively mature, and has a relatively stable competitive landscape. Since 2000, minivans have experienced a three-year decline, with an average decline of about 10%. Wuling has been accounting for 70% of the market for micro-cargoes. If this trend continues, it is very dangerous for companies. At that time, the market for micro facets grew exponentially, so we expanded our investment in micro-markets and switched our products. Today, micro-facets account for 82% of the mini-vehicle market, and our micro-facets also account for about 70% of our total production, which follows the trend of the market. (Reporter Fu Hui Liuzhou, Shanghai Report)
View related topics: SAIC commercial vehicle expansion