GM Will Begin Offering Full Sized SUVs in China
General Motors intends to start selling its full-size SUVs in China and is currently showcasing the Chevrolet Tahoe, Chevy Suburban, Cadillac Escalade, and GMC Yukon Denali at the China International Import Expo in Shanghai. That means these vehicles will be imported rather than being manufactured in-country as part of their government-mandated partnerships with Chinese automotive firms.
Why would GM do this in a nation that’s supposed to be prioritizing hyper-efficient electric vehicles? Well, China is currently the world’s largest car market and is on track to be the only major economy on Earth that will grow during the pandemic — the yuan has already hit a 28-month high against the dollar after the U.S. presidential election started skewing in favor of Joe Biden. Meanwhile, General Motors happens to be one of the region’s largest automakers and competition is stiffing between it and the likes of Volkswagen, Geely, Honda, and Toyota.
Afterward, the automaker may seek ways to manufacturer the models inside of China via its joint partnerships. But GM needs to test the market response before it gets to that point. “We are looking into a variety of market sales plans for these vehicles, including online sales, leasing, and others,” he said.
The imports will, however, not change GM’s basic production strategy in China. It will still mostly sell vehicles made in China — for now, at least.
“Depending on however we go we might make other decisions,” Blissett said.
GM has a Shanghai-based joint venture with SAIC Motor Corp. making Buick, Chevrolet and Cadillac vehicles. It has another venture, SGMW, with SAIC and Guangxi Automobile Group, producing no-frills minivans and which has started manufacturing higher-end cars.
Blissett said GM expected “a strong November and December” in China after positive October sales. The automaker is also considering exporting China-made electric vehicles globally, he told Reuters.
[Image: General Motors]
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