By on November 6, 2020

2018 GMC Yukon Denali Ultimate Black Edition

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.

The plan introduces the Chinese market to GMC products for the first time but that may be short-lived as the SUVs are being imported to give the nation a taste of its XXL collection. According to Reuters, GM’s China chief Julian Blissett explained the company’s “intention is to get customer reaction and find a way to sell these cars in China.”

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.

From Reuters:

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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5 Comments on “GM Will Begin Offering Full Sized SUVs in China...”

  • avatar
    Arthur Dailey

    You have not addressed the most important auto news of the week. UNIFOR has announced that Oshawa assembly will re-open. Investment of approximately $1.3 billion to start assembly of pick-ups beginning in January 2022, requiring the hiring/rehiring of approximately 1,700 workers, on a new 3 year contract.

    Woo Hoo!!!!

    • 0 avatar

      That is significant! Thanks for sharing. A quick “Google” reveals that, yes, it was in the Thursday Detroit papers. But not here at TTAC–maybe they are just focused on the election results.

    • 0 avatar
      CKNSLS Sierra SLT

      The reason GM is going to build pickups out of that plant is because the segment makes so much money-GM can absorb some of the increase costs. They will move less profitable (to build) vehicles to Mexico.

  • avatar

    Great news Arthur. More capacity to build zero emission EVs.

  • avatar

    Will the 2.0T move a Yukon adequately?

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