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shanghaidaily.com
THE Shanghai Automotive Industry Corp and partner General Motors Corp plan to invest US$650 million in their Chinese joint venture to expand production and increase market competitiveness.

The capital injection is part of SAIC's 9.2 billion yuan (US$1.15 billion) investment plan to introduce new models, add capacity in its joint ventures and boost research and development of its self-branded vehicles.

As part of the plan, SAIC and GM intend to spend a combined US$217 million to increase the registered capital of their equally owned Shanghai General Motors Automobile Co Ltd, according to a statement from Shanghai Automotive Co Ltd, the listed unit of SAIC.

General Motors Corp and SAIC will retain their existing shareholdings under the deal.

Communications officials did not provide details on the capacity expansion. But a company source said the investment would be used to upgrade existing assembly lines for future products rather than build new plants.

GM said earlier that the company plans to launch production of a hybrid vehicle that uses gas and electricity next year at Shanghai GM.

Shanghai GM is also expected to roll out a new version of the Buick Regal and other models under the Chevrolet brand.

SAIC also announced a series of investments in auto parts makers as well as a research and development institution to support the development of Shanghai GM and its self-branded models.

SAIC, the Chinese partner of GM and Volkswagen AG, ranked first among Chinese car makers in sales last year.
 

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Introducing Shanghai General Motors (SGM).

Established on June 12, 1997, Shanghai General Motors (SGM) is a 50-50 joint venture partnership between General Motors and Shanghai Automotive Industry Corporation (Group), or SAIC, China’s largest passenger car manufacturer. Since its first day Shanghai GM has striven resolutely towards its strategic goal – to become the leading domestic and internationally competitive automaker. Shanghai GM has quickly established itself as a world-class business with enormous potential for sustainable expansion, due to its adaptability, international vision, continuous innovation, and the integration of its global and local advantages. Shanghai GM is the only domestic automaker realize a total sales volume of one million units in eight years since commencing operations, it was also ranked first in the passenger car market in 2005, and is the only automaker rated as China’s Most Admired Companies for five consecutive years.
With its customer-oriented and market-driven philosophy, Shanghai GM satisfy the ever-growing market demand by offering a comprehensive, high-quality product portfolio, superior services as well as rich and different product lines, and become a multi-brand company with comprehensive product lines. Today, newly formed product portfolio of Shanghai GM include four major brands – Cadillac, Buick, Chevrolet and Saab, categorized by 18 product lines, with almost 60 models: Cadillac CTS, Cadillac SRX, Cadillac XLR; Buick Royaum, Buick Regal, Buick GL8 series, Buick Excelle series; Chevrolet Epica, Chevrolet LOVA, Chevrolet Aveo, Chevrolet Sail compact car; Saab9-3 sport sedan, Saab9-3 convertible, and Saab9-5 sedan. With the brand localization and product localization strategy and through integrating global and domestic resources, all SGM vehicles represent not only the most advanced products in their segments, which include the latest technologies, delivering superior features and functions in power, safety, comfort, and environmental friendliness.
Leveraging its world-leading technology and product resources, Shanghai GM developed a complete lean manufacturing-based system that handles every aspect of the production process, including purchasing, logistics, manufacturing, sales, after sales and quality management. Shanghai GM fully implemented the most advanced information system solution (SAP IS-AUTO). It gives SGM an integrated and optimized value chain with aspects such as manufacturing, purchasing, financing, quality control, marketing logistics, and after sales system. Shanghai GM boasts China’s first flexible manufacturing system, which allows the production of different-platform vehicles on a single production line. This state-of-the-art system covers all operations for producing complete vehicles, including press, body, paint and assembly, as well as the entire process for manufacturing powertrain, engines and transmissions. Shanghai GM utilizes the Global Manufacturing System (GMS), applying the five key principles of people involvement, standardization, built-in quality, short lead time, and continuous improvement to the entire manufacturing process. SGM has successfully passed a joint quality assessment conducted by Shanghai Audit Center of Quality System (SAC) and Det Norske Verritas (DNV), becoming the first automaker in China to be granted the ISO/TS16949:2002 certification, which is the latest international quality control standard. In addition, Shanghai GM was also awarded with ISO14001 Environment Management System Certification and OHSAS18001 Occupational Health & Safety Certification.
To date, SGM has three major manufacturing plants – Jinqiao, Yantai, and Shenyang; four vehicle production factories – the North and South plants of Jinqiao, Shanghai GM Dongyue Corporation of Yantai, and Shanghai GM (Shenyang) Norsom Motors Company Limited; and two powertrain companies – Jinqiao Powertrain and Shanghai GM Dong Yue Powertrain Company Limited. Jinqiao has an annual manufacturing capacity of 320,000 vehicles, 100,000 transmissions, and 200,000 engines; SGM Dongyue has an annual manufacturing capacity of 240,000 vehicles, 375,000 engines, and SGM Norsom 40,000 vehicles. The annual production capacity of SGM is expected to be more than 600,000 units, making SGM a leader among domestic automakers in scale and strength.
While expanding its operations in China, Shanghai GM has been seeking opportunities in the overseas market. In October 2001, the first batch of Buick GL10 vehicles was exported to the Philippines, marking the first export of China-made passenger vehicles sent overseas. In November 2002, SGM reached a milestone agreement with CAMI to export high-displacement V6 engines to Canada, beginning in January 2003, with a maximum five-year export volume of 600,000 sets. This project represents the first case of an automaker in China to export high-end high-displacement engines in large volumes to a developed country. In June 2006, SGM started to export the KD kits of both 3.0L or 2.4L models of Buick LaCROSSE to Taiwan. By entering a mature market with more cut-throat competitions, this export of the vehicle model in the KD form is a pioneering breakthrough of Shanghai GM to explore the mid- to high-end sedan market outside the Chinese mainland. In June 2006, more than one thousand units of Chevrolet Aveo in KD parts were exported to Russia. This is the first time for Chevrolet product to be exported after many successful exports of SGM to the overseas market, demonstrating once again that SGM is actively involved in both domestic and international competitions and striving to become a leading domestic and internationally competitive automaker.

Companies.

Shanghai GM:
Shanghai GM was founded on June 12, 1997 with 50% investment each from Shanghai Automotive Industry Corporation (Group) and General Motors.Shanghai GM is located in Shanghai's Pudong Jinqiao Export Processing Zone and occupies an area of 800,000 square meters.

Shanghai GM currently manufacturers the Cadillac, Buick and Chevrolet brands, with a product lineup comprising 9 major lines and 33 specific models such as the Cadillac CTS and SRX, Buick Royaum, Buick Regal, Buick GL8, Buick Excelle, Buick Excelle HRV, Chevrolet Epica, and Chevrolet Sail, a compact sedan. Products in all these lines include advanced technology and are market leaders in their classes for excellence in safety, power, comfort and environmental standards.Shanghai GM holds fast to its operating philosophy of being "customer-centric and market-oriented", and constantly raises the level of quality, adds products to its lines and improves efficiency of service, always with an eye toward satisfying ever-increasing user demand.Currently, Shanghai GM owns three production bases, in Jinqiao, Yantai and Shenyang. Jinqiao South and Jinqiao North, as well as Yantai Dongyue Automotive and Shenyang Beisheng Automotive produce finished vehicles, while Jinqiao Powertrain and Yantai Dongyue Powertrain produce powertrain assemblies.The Jinqiao base has an annual production of 320,000 vehicles, 100,000 automatic transmissions and 200,000 engines; the Yantai base produces some 120,000 finished vehicles annually, as well as 375,000 engines. The Shenyang base produces some 40,000 finished vehicles annually.Each year, Shanghai GM produces a total of 480,000 vehicles, putting the company in a leading position among car manufacturers in China both in scale and capacity.

Shanghai GM has relied on the concept of precision in production to establish a complete purchasing, logistics, manufacturing, sales and after-sales service network and a quality management system.The company also makes optimal use of computer-controlled technologies in both production and management. China's first advance-level flexible production line that attains the world class standard include stamping, vehicle bodies, painting, assembly and other links in the assembly chain for the manufacture of vehicles, engines, and transmissions.Shanghai GM has made the strategic decision to comprehensively implement a SAP IS-Auto information system.This was a very challenging milestone, not only from the point of view of scale but also difficulty, and such results are seldom seen in the automotive industry anywhere in the world.The system will comprehensively implement Shanghai GM's integrated value chain for marketing, purchasing, logistics, manufacturing, and financial operations with full integration and excellence, and further improve Shanghai GM's core abilities in flexible production and management excellence to enable the company to utilize a strong, computerized support platform in the hotly competitive and ever-changing market of tomorrow. It will also set a firm foundation to allow Shanghai GM to enjoy sustainable development and integrate operations throughout China and abroad.To date, Shanghai GM has passed quality audits by SAC and DNV, and has obtained certification as a QS9000 quality system automotive manufacturer, the first automotive company in China to achieve this distinction. At the same time, the company also holds ISO14001 certification in environmental systems and OHSAS 18001 certification for health and safety.

While constantly striving to open up new domestic markets, Shanghai GM has also consistently sought to develop overseas markets and looked for opportunities to compete internationally. In October 2001, the first batch of Buick GL10s was exported to the Philippines, marking the beginning of a flood of exports of mid- and upper-market Chinese sedans. In November 2002, Shanghai GM and CAMI reached an export agreement that saw the export of a large number of V6 engines to CAMI beginning in January 2003. Over a five-year period, exports have reached 600,000 units, marking the first incidence of large-scale export of high-end gasoline engines for automobiles to a developed country.
 

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Shanghai GM Dongyue Automotive Ltd:
Shanghai GM Dongyue Automotive Ltd. is the result of investment by Shanghai GM (50%), the Shanghai Automotive Industry Corporation (Group) (25%) and GM China (25%). The firm came about as a reorganization and merger of the original Yantai Body, Ltd., and is the second Shanghai GM production base, after the Pudong Jinqiao facility.

The company is located in Shandong's Yantai Economic and Technological Development Zone and was formally registered on February 10, 2003. The phase one facility has an area of 520,000 square meters, with 200,700 square meters of building area, and includes stamping, body, painting, and assembly capabilities. The production network works two shifts and produces 100,000 vehicles, and the facility is slated to go to a production of 300,000 units annually in the future.

The facility is an important facet of the development strategy of Shanghai GM, the Shanghai Automotive Industry Corporation (Group) and GM (China). The factory is on pace to develop into an excellent, flexible, modularized, agile facility capable of manufacturing high-quality products. Shanghai GM's flexible production and management system will be applied and there will be sharing of resources with Shanghai GM on product design, production, parts sourcing, marketing network, information, quality systems and human resource management, to implement seamless, unified management.

Shanghai GM Dongyue Automotive Ltd. comes under the world-leading Shanghai GM quality system, and incorporates the establishment and operation of the quality system beginning from the design phase.The company holds ISO9001 certification jointly administered by Norway's DNV and Shanghai's SAC, as well as the ISO14001 certification for environmental management systems and the OHSAS18001 occupational safety and health management system certification administered by DNV. It can also point to a 3C certificate from China's General Administration of Quality Supervision,Inspection and Quarantine , and has passed an audit for consistent production of low-emissions cars managed by the State Environmental Protection Administration of China. These certifications, added to the system currently in place, furnish a solid foundation for the manufacture of high-quality products.

As a production base for Chevrolet, one of Shanghai GM's three major brands, Shanghai GM Dongyue Automotive primarily produces a total of 8 models of the Chevrolet Epica and Chevrolet Sail. These vehicles are able to satisfy the particular needs of various groups of owners.In the future, in accordance with Shanghai GM's unified planning, Shanghai GM Dongyue Automotive Ltd. will look to demand developing in the market to constantly launch high-quality products capable of satisfying customer needs.
Shanghai GM Dongyue Automotive Powertrain Ltd.:
Shanghai GM Dongyue Automotive Powertrain Ltd. was formed with investment by Shanghai GM, the Shanghai Automotive Industry Corporation (Group) and GM (China) in a 50-25-25 ratio. Dongyue Automotive Powertrain, a reorganization of the original Shandong Daewoo Engine by Shanghai GM, is Shanghai GM′s second powertrain assembly production base, after Pudong Jinqiao Powertrain.

Shanghai GM Dongyue Automotive Powertrain Ltd. is located in Yantai Economic and Technological Development Zone, and was formally registered on June 18, 2004. The plant occupies 456,000 square meters and has 124,000 square meters of buildings. It comprises five main items of work: engines, transmissions, casting, forging, and cast aluminum.

As the second powertrain assembly base for Shanghai GM, Shanghai GM Dongyue Automotive Powertrain Ltd. will develop an excellent, flexible, modularized, agile facility capable of manufacturing high-quality products. Shanghai GM's flexible production and management system will be applied and Shanghai GM's management system will be utilized for product design, production, parts sourcing, marketing network, information, quality systems and human resource management.

The company adheres to Shanghai GM's "4S" cooperative philosophy and to the core values of a customer-centric view of operations with emphasis placed on safety and teamwork, sincerity and honesty, and on constantly improving and innovating to successfully transplant and develop Shanghai GM's existing QS9000:2000 quality system. This system is in use throughout the entire production and manufacturing process.At the same time, the highest quality management system in the automobile industry, ISO/TS16949: 2002 is the ultimate goal of the quality management system. Currently, the company is unremittingly improving on its existing quality management foundation, and anticipates receiving the ISO/TS16949:2002 quality management system certification at the end of 2005 to establish the finest quality management system in the automobile industry.

Under the guidance of Shanghai GM, Shanghai GM Dongyue Automotive Powertrain utilizes GM's advanced global network and resources to constantly produce high-quality products.
Shanghai GM (Shenyang) Beisheng Automotive Ltd.:
Shanghai GM (Shenyang) Beisheng Automotive Ltd. was founded on August 2, 2004 from the former Jinbei GM Automotive, Ltd.In March 2004, Shanghai Automotive Industry Ltd., GM China, GM (China) Investments, Ltd. and Shanghai GM put up 25%, 15%, 10% and 50%, respectively, to jointly fund the new Sino-foreign joint venture.The company has a total investment of US$564 million, registered capital of US$227 million, and registered headquarters at No. 15, Beidaying Street, Dadong District, Shenyang. The facility is the third domestic finished vehicle production base for Shanghai GM. Technological upgrades were implemented in March 2004 to existing body, painting and assembly workshops. After renovations, the factory has an area of 92,000 square meters, with 35,000 square meters in buildings.The production line works two shifts and has a designed annual capacity of 50,000 vehicles; currently, the plant makes the Buick GL8 executive wagon.

Shanghai GM Beisheng Automotive's goals are to pursue excellence, be flexible, modular, agile, and produce a high-quality product. The flexible production and management system from Shanghai GM's Jinqiao production base will be applied and Shanghai GM's management system will be utilized for product design, production, parts sourcing, marketing network, information, quality systems and human resource management to implement integrated management. At the same time, the company is actively promoting an environmental management system and quality environmental management system. To date, the company has obtained quality certification jointly issued by China's CQC and DNV in Norway.Likewise, the company lays great emphasis on reducing the impact of product and production processes on the environment. All the company's products meet European Number II emissions standards, and the flagship model, the Buick GL8, also successfully obtained China's 3C certification in September of 2004.

At Autohome:
http://www.autohome.com.cn/culture/201706/903971-4.html
 

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GM finds surprising success in China.

The old symbols are still there: the monuments, the uniforms, even the red flag.

But on the streets of today’s China there are a growing number of new icons that Mao Zedong never dreamed of, with prestigious names like Rolex, Louis Vuitton — and Buick.

That’s right, Buick. Look anywhere in China and there they are: Buick sedans, Buick station wagons, even Buick police cars.

What would Chairman Mao think? Six decades after the communist revolution, China has become the hottest capitalist engine on earth. And ironically, some of the most revered symbols of success in today’s China are Cadillac, Buick and Chevrolet.

General Motors may be struggling at home, but it is thriving in China. In 2007, GM sold nearly twice as many Buicks in China as it did in the United States — more than 330,000. In this part of the world, your grandfather’s stodgy old car is actually hip.

"Growing so fast is not easy,” said GM CEO Rick Wagoner. ”But it’s better than shrinking, I promise you.”

We joined Wagoner on a recent trip to China, and found him awestruck by the country’s economic vitality.

"In a way it is — I don’t know what it is — 30, 40, 50 years of progress in 12 years,” he said. “It’s like things run here in triple time."

In 1997, Wagoner and his then-boss Jack Smith made a gamble, betting $1.5 billion that GM could build and sell cars in China.

Partnering with a once-hostile Communist government in a country moving mostly on bicycles, GM was taking a big risk.

But Wagoner believed the Chinese were ready to trade two wheels for four, and he wanted GM to go along for the ride.

"Back in 1997, the Chinese market was about 1.5 million units,” he said. “We sold about 60,000. So I don’t think, to be fair, anyone could see the extent of the potential.”

Wagoner’s hunch was that 1.4 billion Chinese — long denied access to Western goods — would be starving for legendary brands like Buick, Cadillac and Chevrolet.

In the end, Wagoner was right. Just ask Zhoucheng Ye, a 36-year-old businessman from Shanghai province.

He and his brother traveled three hours to a Chevrolet dealership here in Shanghai to buy his very first car, a brand new Chevy Aveo.

"I saw Chevrolet is very heavily used, I saw a lot of them on the streets,” Zhoucheng told us through a translator. “Chevrolet has very good quality and quality is very important for Chinese.”

Zhoucheng may be new to car buying, but he works the deal like a pro. Zhoucheng and the dealer settle on a price of 76,000 Chinese Yuan — roughly $11,000 — which Zhoucheng pays in full using a bank debit card. Like a new-car buyer anywhere, Zhoucheng is delighted with his purchase.

So why buy American instead of a car made by a Chinese manufacturer?

"American producers have a longer history of producing cars and they have better techniques,” said Zhoucheng.

There’s just one problem: Zhoucheng doesn’t have a driver’s license, so his brother will have to drive the new car home. Still, Zhoucheng is thrilled, and so is GM.

The automaker has captured 12 percent of the growing Chinese automobile market, the largest share of any car maker here. It’s a story playing out in other countries, too.

GM is investing heavily in places like India, Brazil and Russia. Eastern Europe, where the Chevrolet brand is on fire, is one of GM’s hottest markets. Apparently, ex-communists love Chevy.

GM’s global strategy has silenced critics who argued its capital belonged at home, rather than abroad.

We saw an example of that first hand at Daewoo Motors in South Korea.

In 2002, Daewoo was bankrupt, broken, and looking for a buyer. GM was looking for opportunities overseas, and so in 2002 a deal was made between the two automakers.

Today, under GM ownership, Daewoo’s factory floors are humming and its bottom line is booming.

When GM bought Daewoo back in 2002, it was considered a struggling second-tier automaker making about 280,000 vehicles a year. Under GM’s leadership things have changed. GM has been shaking up the company by spending more on its overseas operations.

Before GM, Daewoo was struggling to make 300,000 cars a year. This year, GM Daewoo will sell 2.1 million vehicles under 8 nameplates sold in 150 countries around the world.

Daewoo is also cranking out profits.

But if South Korea is one of GM’s diamonds, then China — with its potential for staggering growth — is GM’s crown jewel. And Wagoner is determined to keep it that way.

"We like our position, we are proud of it,” he said. “But that just means we can play tomorrow. If you rest here you are going to be in trouble. Competition from everywhere around the world is roaring in.”

Wagoner has to be vigilant.

The fact is, General Motors makes more money selling cars overseas than in the United States.

And with more than a million vehicles sold here in 2007, China is no sideshow for GM. It is its future — a point Wagoner drives home to his top executives.

"This seems like the eighth year in a row where we come over and we had to increase the Asia forecast during the year,” he said

That’s why GM chose China to unveil a new Buick concept car — and why Wagoner never misses the Beijing motor show.

At six feet four Wagoner, a former Duke basketball player, is a commanding presence at the motor show. He puts on a full court press with his political skills, working the crowd and offering congratulations and appreciation to the leaders of GM’s operations here.

As Wagoner walks the show floor, he’s confronted with a stunning array of Chinese competitors — nearly four dozen of them — spinning out everything from micro-cars to Hummer rip-offs. Brands with names like “Soueast,” “Polarsun” and “Dongfeng.”

"There are 46 brands here gunning for each other,” said auto industry analyst Michael Dunne, who covers the Asian auto market for global marketing firm J.D. Power and Associates. “If you make a mistake you will be taken down.”

Dunne says GM better watch its back in China.

"GM has done a lot of things right to get to where it is today,” he said. “They will have to continue to get all of them right to maintain their position in the market. They slip? Someone will take it from them.”

Dunne says he’s optimistic GM will maintain its position — but he’s also realistic.

"If you look worldwide at what happens when GM goes up against Toyota and Honda, the Japanese time and time again win,” he said. “GM has got to do even better here in China if it hopes to keep its edge.”

Wagoner seems well aware that staying on top in China won’t be easy.

"I have not seen anything to suggest this industry is going to be an easier place to compete,” he said. “And I think it would be crazy not to expect there’ll be some Chinese players that are serious global competitors over the next decade or so.”

The car business is brutal, and it won’t be long before the Chinese get the hang of it.

But in what will soon be the world’s largest car market, GM has a big head start. And when GM’s U.S. troubles keep him up at night Wagoner can remind himself — at least for now — that “Buick” is Chinese for "success."
source:
http://www.msnbc.msn.com/id/25950947/
 

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The Cavalier, Sail 3, and Lova RV have been officially discontinued in China.

Sales of the Lova RV stopped in January 2019, the last units having been made in September 2018.

The Cavalier is now made only for export. The Onix has replaced it in China, where it continues with the same model name in Chinese, Kewozi.

The Sail, as of September 2019, was still being made in significant quantity, so apart from exports, the Sail 3 might remain available domestically for fleet/taxi markets.

Latin America is the main export market for the Cavalier and Sail 3. The Sail 3 is also assembled in Ecuador. The new Onix, sourced from either Brazil or Mexico (soon), will eventually replace the Sail/Aveo and Cavalier in most of the Latin American countries.
 
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