#ChineseBrand

GM added more capacity to its Chinese Baojun brand by opening a factory in Liuzhou, southern China. Plant and brand are part of the SAIC GM Wuling joint venture, where GM holds 44 percent, SAIC 50 percent, with 6 percent held by Wuling.

Baojun started with the Baojun 630, a compact sedan based on an older Buick Excelle/Daewoo Lancetti platform, later the Le Chi was added, a rebadged Chevrolet Spark. By 2015, Baojun wants to have a total of five models, Reuters says.

Baojun is one of China’s joint venture brands, which we at TTAC like to call “fake Chinese brands.”

When you have a larger joint venture with a Chinese automaker, at some point it will be strongly suggested to you to create a Chinese brand. At least this is how The Financial Times understands it: “Foreign carmakers wishing to build new plants or add capacity in China’s burgeoning car market are being told by the government that if they wish to expand, they must develop a low-cost local car brand.”

Early fruits of these suggestions can be seen at the Shanghai Auto Show.