“GM will never cooperate with FAW in the field of passenger vehicles. Our strategy in China is very clear. SAIC is our passenger vehicle partner.†On August 30, FAW-GM Commercial Vehicle Co., Ltd. was Changchun was established, and General Motors China President Gan Wenwei attended the listing ceremony and returned to Shanghai to make the above remarks. At this time, he already had another title – Deputy Director of FAW-GM Commercial Vehicle Co., Ltd. long.
Since Gan Wenwei served as President of GM China, he has never encountered such a thorny incident. Even if GM is close to bankruptcy, he will use "China's business will not be affected, and all GM's commitments will remain unchanged." Comfort everyone. But now, he may have to hesitate to answer the same question - what exactly does GM put SAIC and FAW in? A question that once was only the president of Volkswagen China, Fan Ande, was once again in front of him.
The next day, the reporter went to FAW Group. It seemed extremely busy here, but the employees did not seem to care much about the establishment of FAW-GM. In fact, the entire FAW Group is already in full alert. In order to welcome the 60th anniversary of New China, FAW is stepping up preparations for a series of activities. The Hongqi sedan, which became the national review vehicle, also became the most important secret of FAW. Employees were told that all information about this car should not be disclosed to anyone. A related person in FAW Group told the reporter that FAW's own brand construction is far more important than their cooperation with any multinational company, and the joint venture between FAW and GM is also to some extent the development of independent brands. .
It is understood that FAW-GM has 50% shares in each of FAW Group and General Motors, and Xu Jianyi, general manager of FAW Group, has a total investment of 2 billion yuan and a registered capital of 1.2 billion yuan. FAW Group is a shareholder of FAW Harbin Light Vehicle Co., Ltd. (a wholly-owned subsidiary) and FAW Hongta Yunnan Auto Manufacturing Co., Ltd. (a controlling subsidiary), while General Motors fully uses cash investment. Gao Yuan, director of FAW News Center, told reporters: "The joint venture company will introduce general management and technology, and it will still produce FAW independent models such as Xiaoli Lifang. As for the introduction of models, there is no timetable."
In the afternoon of the same day, the reporter conducted an exclusive telephone interview with Gan Wenwei. He confirmed that the joint venture company mainly focuses on FAW's existing products, considering that FAW's product line for light trucks has been very broad, and it will still maintain the original liberated brand of FAW at this stage. “The existing production plant of FAW Harbin Light Vehicle Co., Ltd. is in the urban area, but the equipment and other equipment are obsolete. Therefore, we have built another new site and built a new production plant. The design capacity will be correspondingly improved. The original plant will be built after the completion of the new plant. Will be closed.†Gan Wenwei said that by 2010, the joint venture's production capacity will be increased to 200,000 units from the original 100,000 units.
A FAW Group person involved in the joint venture negotiation told the reporter that FAW and GM have been negotiating for two years. It was originally planned to be listed in March this year. However, the GM’s bankruptcy crisis has been met. Until the establishment of the new GM, the joint venture was re-mentioned. The schedule comes up. He also said: "Generally used the money it made in China to invest in joint ventures. The United States does not have a penny. It is also a matter of great pride for them. In fact, in the current general situation, the headquarters is also overwhelming. No money."
“Our products in the past few years will use liberated brands, and the products introduced in the next three years will use generic brands. As a 100-year company, GM will provide joint ventures with advanced experience in production methods and market management, as well as in the future. The product's powertrain gives support," said Gan Wenwei. GM has a very broad marketing network in the world. Once the joint venture needs to export, GM will jointly enjoy the marketing network with the joint venture.
According to the information provided by FAW Group, in 2008, the total exports of FAW vehicles and parts and components totaled 518 million U.S. dollars, of which 25,242 vehicles were exported, amounting to 378 million U.S. dollars. Among them, the proportion of light truck exports is not large, and the main exporter is Ukraine. Last year, it exported only nearly 2,000 vehicles. GM's sharing of its overseas marketing network with the joint venture company is precisely what FAW hopes. It is much easier to enter the overseas market with the help of common forces than through FAW alone. Once GM makes money in the joint venture company, it may also expand the scope of cooperation. FAW's long-term exports of medium and heavy trucks may not necessarily be unable to use the universal network. For FAW, this is indeed an opportunity to expand the overseas market of commercial vehicles' own brands.
In fact, in the spectrum of general commercial vehicles, high-end light passengers and pick-ups are common, and light-duty trucks are not a common item. GM's commercial vehicle brand GMC, whose main product is a pickup truck, is expensive and fuel-consuming in the United States. It is also unlikely to have a market in China and the possibility of introduction is low. Industry insiders speculated that GM's introduction of FAW's products is likely to be light passengers or MPVs, which is similar to FAW's current product direction. The reason why it is not introduced now is that GM must first examine the operation of the joint venture company, and secondly, to take care of the sentiments of SAIC Motor, which may be the most important reason.
On September 1, the reporter called SAIC and asked them their views on the joint venture between GM and FAW. On the second day, SAIC gave the official reply: “The cooperation between GM and FAW in commercial vehicles will not affect the cooperation between SAIC and GM. Since 1996, the cooperation between SAIC and GM has involved automotive manufacturing, automotive R&D, and automotive finance. Many areas, such as the World Expo Exhibition, are in good progress. SAIC is confident that it will continue to deepen its cooperation with GM and jointly promote the development of China's auto industry."
SAIC's prudent answer was expected by people. In fact, prior to the establishment of FAW-GM, the relationship between SAIC and FAW was once too tight. A person close to GM told reporters that prior to the establishment of the new GM, FAW had suggested that GM set up headquarters of the new GM International Operations Department in Changchun and was opposed by SAIC. GM also believes that it is safer to build in Shanghai. On the one hand, it is for the understanding of SAIC Motor. On the other hand, considering Shanghai as an international financial center, it has a higher business influence than Changchun.
In addition to SAIC Motor’s commercial vehicle cooperation with Shanghai Iveco, SAIC also has Shanghai Huizhong, but it is still weaker than FAW. GM, with Wuling, has a large share of the vast rural market, eager to occupy a larger share of commercial vehicles in China, and FAW is absolutely the first choice. In an interview with reporters, Luo Ruili, executive vice president of General Motors and president of the International Operations Department, said: “We have seen that in the global light trucks, the proportion of Chinese products has already accounted for 1/2, and this proportion will continue to increase in the future. Our products, excellent management team, and China's vast market are all our values."
"For those markets where FAW already has a very strong brand awareness, we still use the brand of FAW Jiefang. If the market is not highly accepted, we may use generic brands. Whether or not we continue to use liberated brands is a commercial choice." When talking about the future of FAW-GM's export business, Gan Wenwei said so. In order to benefit from the joint venture company, GM has not even minded the brand interchange, showing its sincerity towards FAW.
Compared with 12 years ago when GM first came to the Chinese market, today's Chinese auto companies are no longer the weak group that previously unconditionally cooperated. GM would like to take the balance beam without any errors. I am afraid that technology alone will not work.
View related topics: Joint venture hot car
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