China plans: GM

General Motors is looking at increasing its stake in their current joint venture with local automakers Shanghai Automotive and Wuling Automobile, called SAIC-GM-Wuling Automobile Co. Ltd., as part of its strategy to start focusing on small cars that can compete with Tata's Nano, a.k.a. the People's Car. GM owns 34% of this venture.

The SGMW joint venture currently produces minivans and other small commercial vehicles under the Wuling brand, and as such they are China's largest minivan manufacturer (they sold 550,000 units in 2007). They also make one GM branded model, the low-cost Chevrolet Spark minivan. GM is trying to lower production costs on the Spark.

A noteworthy offering from the SGMW joint venture is the tiny Xingwang (a Wuling brand model), the smallest, cheapest offering from SGMW. The Xingwang may in fact soon carry the GM brand name.

Shanghai General Motors is also pushing a green philosophy in its marketing message. They unveiled two hybrid vehicles at the Beijing International Auto Show, the LaCrosse Eco-Hybrid (to be sold in June 2008) and the Cadillac Escalade 2-Mode Hybrid (2009).

Tags: GM, General Motors, GM Spark, Shanghai Automotive Industrial Corp, SAIC, SAIC Motor, Shanghai Automotive, Shanghai General Motors, Shanghai GM, Wuling Automobile, SAIC-GM-Wuling Automobile Co, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry, alternative energy, hybrids

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