The US automaker General Motors is in because of shrinking market shares China is implementing its strategy and is focusing more on electromobility and automated driving. “The market is changing dramatically,” said GM’s new China boss Julian Blissett of the Reuters news agency. The largest US automaker wants to respond to this and make it cheaper Electric cars, but also to bring larger, more environmentally friendly SUVs onto the market, from which the group earns more. The Cadillac brand, which is driving the electrification of its model range and has many customers in the premium segment, plays a key role in the plans. The Buick brand will also be more electrified, announced Blissett.
Next to it wantsGeneral Motors the Chinese brand Wuling, which the Americans operate together with their local partner SAIC, are converting into a manufacturer of inexpensive e-vans, so-called “people movers”. China has been on the move for a long time E-mobilityto curb environmental pollution in its cities. “Over the next five years, more than 50 percent of our capital and engineering will go into electrification and autonomous drive technology,” said Blissett. “That should give you an indication of what GM is betting on going forward.”
GM plans to sell 4 million cars in China every year
Although climate-friendly mobility is also being promoted in Europe and the USA, the electrification of cars in China is happening much faster, said the manager. Chinese customers are enthusiastic about technology and new technologies such as partially automated driving are being adopted more quickly there. This will play an important role in GM’s strategy.
With the new strategy, GM expects to make up lost ground in China. The car market there comes after Corona crisis All in all, it’s getting better and better and is stabilizing the industry, which is groaning elsewhere under the consequences of the pandemic. The Detroit Group’s market share in China has shrunk in recent years, from 14.3 percent with a total market of 28.2 million vehicles in 2017 to 12.2 percent with 25.4 million units in 2019. Blissett said the goal is to get back to sales of four million vehicles per year as soon as possible.
The two GM brands Wuling and Baojun have suffered particularly from dwindling sales over the past two years as lower-income consumers bought fewer cars because of the sluggish economy. In addition, competition from Chinese brands for cheap cars has increased significantly.
Beijing’s focus on greener vehicles has also significantly increased the cost of developing and manufacturing cars. This has accelerated the restructuring of the Chinese automotive industry. Small brands like Lifan have already given up.
The French Opel mother PPE has cut back its loss-making business in China. Renault no longer plays a role after the new distribution of tasks in the alliance with Nissan in China. “A revolution is afoot in the industry,” said Blissett. There are also winners and losers among global brands. “The trend is that the local brands are losing shares.” In the luxury segment, on the other hand, market share could be gained. Analysts expect that the consolidation of the Chinese auto industry will continue in the next few years – both by Mergers and acquisitions as well as by companies giving up.