SAIC-GM-Wuling

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SAIC-GM-Wuling Automobile
Native name
上汽通用五菱汽车股份有限公司
Type Joint venture
Industry Automotive
Founded18 November 2002;18 years ago (2002-11-18)
Headquarters
Area served
China
Indonesia
Key people
  • Shen Yang (General Manager) [1]
  • Raymond Bierzynski (Executive vice president) [2]
ProductsMini-trucks, microvans, passenger cars
BrandsWuling
Baojun
Owners [3]
Number of employees
20,000 [4]
Subsidiaries Baojun
SGMW Motor Indonesia
SGMW Motor Hong Kong
SGMW Motor Macau
Etsong Vehicle Manufacturing
Website sgmw.com.cn

SAIC-GM-Wuling Automobile (上汽通用五菱汽车股份有限公司 and abbreviated as SGMW) is a joint venture between SAIC Motor, General Motors, and Liuzhou Wuling Motors Co Ltd. Based in Liuzhou, Guangxi Zhuang Autonomous Region, in southwestern China, it makes commercial and consumer vehicles sold in China under the Wuling and Baojun marques, respectively. A major mass-volume producer in the Chinese interior, in 2011 SGMW sold 1,286,000 vehicles in China, 1,445,000 in 2012, and aims to sell 2 million cars annually. [5] Its offerings range in price from US$5,000 to US$10,000. [6]

Contents

SGMW is one of the largest manufacturers of microvans in China. Known as mianbao che (面包车), or “bread box cars,” these pint-size commercial vehicles are no larger than a compact car and have sold well in the poorer interior. [7] One of its popular microvans is the Wuling Sunshine. Selling more than 450,000 units per year, [8] SGMW has claimed no one model outsells it in China. [9]

Wuling brand logo Wuling logo.png
Wuling brand logo

Both SGMW and Liuzhou Wuling Automobile Industry Co. Ltd. use the Wuling brand name and the red, five-diamond "W" logo.

History

While Wuling microvans have been manufactured since 1982, [10] in 1986 Wuling's predecessor company, Liuzhou Automotive Industry Corporation, reached an agreement with Mitsubishi Motors to assemble the L100 type Mitsubishi Minicab. [11] Originally, 90% of parts were imported, but gradually local parts content increased. This small van was sold as the Liuzhou Wuling LZ 110.

In 2002, the joint venture SAIC-GM-Wuling was formed, with SAIC taking 50.1% of the shares, GM 34%, and Wuling Group 15.9%. [12] Wuling transferred the production of microvans and small trucks to the new company. Since at least 2008, GM sought to increase its ownership achieving this aim c. 2011. [13] Its stake rose to 44% [14] —leaving Wuling with 5.9%. [15]

In 2010, SGMW created a passenger car brand to compete against indigenous products, Baojun. [16] The company sold a passenger vehicle, the Chevy Spark / Daewoo Matiz M150, as the Baojun Lechi from 2007 to 2012, however. [8]

In late 2012, ten years after the formation of the joint-venture, SGMW opened a new factory for the production of Baojun passenger cars in Liuzhou, Guangxi Zhuang Autonomous Region, ready to produce 400,000 units per year. [17] A factory with capacity for the same number of power trains is also being built. [17]

Etsong acquisition
FAW Jiefang CA6400UA, a Chinese-built Maestro FAW Jiefang CA6400UA, front three quarter.jpg
FAW Jiefang CA6400UA, a Chinese-built Maestro

Best known for its tiny offerings, in 2005 SGMW acquired diminutive Etsong Vehicle Manufacturing, a small-scale manufacturing concern based in Qingdao, China. The factory was originally set up in 1997 by a Chinese tobacco company and was then briefly owned by the First Automobile Works (FAW Jiefang) before the SAIC group took over the factory. Since 2000, a number of Austin Maestro/Montego amalgams had been produced under the Etsong Lubao and Etsong Lande nameplates, but SGMW did not recommence production of these aged models after the takeover. Instead, the factory is used to augment SGMW mini-vehicle capacity. [18]

Baojun

Perhaps the culmination of GM's dream to build a "farmer's car", [19] the Baojun brand was established in 2010 and aims to sell to consumers in third and fourth tier Chinese cities. [20] Such large- and medium-sized Chinese cities are not counted among the top four in terms of population and contribution to GDP. [21]

Baojun currently competes for consumers with indigenous brands like Chery and Geely. [16] Its two offerings include, as of 2012, the 630, a small four-door sedan, and the Lechi minicar. [16] The latter is an updated version of the first generation Daewoo Matiz and was previously sold under the Chevrolet brand name. During the transition between brands, the Lechi was offered as both a Chevrolet and a Baojun. [22]


Products

Crossovers and SUVs


Pickups


Microvans
Wuling LZW6381 Wuling LZW6381C3 fv.jpg
Wuling LZW6381


MPVs
Wuling Hongguang Wuling Hongguang China 2012-04-15.jpg
Wuling Hongguang


City cars
Baojun
Baojun 630 Baojun 630 01 China 2012-07-15.JPG
Baojun 630

Operations

The company has a number of production bases in China. These include a facility in Liuzhou, Guangxi, [16] and a plant in Qingdao, which it had purchased c. 2007. [8]

Overseas operation

On August 20, 2015, the company operating as PT SGMW Motor Indonesia (Wuling Motors) laid the first stone of a new manufacturing facility in Cikarang, West Java, Indonesia. The facility spans 600,000 square meters, set aside for the production and manufacture of motor vehicles in Indonesia and to set up an export base for Southeast Asia. The investment of the project is around US$700 million. At peak capacity, the plant is expected to produce up to 150,000 vehicles in a year and estimated to create estimated 3,000 jobs. On July 11, 2017, the facility starts its operations for mass production. The first product under the brand Wuling Motors for Indonesian market is Wuling Hongguang S1, renamed as the Wuling Confero. [25] In 2018, SGMW Indonesia launched Baojun 730 as the Wuling Cortez. In 2019, SGMW Indonesia introduced Baojun 530, renamed as Wuling Almaz as their first SUV.

Production figures

yearChina totalWulingBaojun
20091,000,000+ [4] 1,000,000+0
20101,226,860. [26]  ? ?
20111,285,820 [22]  ? ?
20121,445,203 [27]  ? ?

Export

While the majority of SGMW products are sold domestically in China, some export does occur. In 2009, Wuling began to export its small commercial vehicles to South America, the Middle East, and North Africa where they are sold under the General Motors Chevrolet brand. [23] The first such vehicles were sent to Peru in July 2009. [28] These exports may constitute CKD knock-down kits with final assembly only done in the receiving nation as is the case in Egypt. [29] [30]

In 2010, GM and SAIC established an equally-owned joint venture which exported SGMW products to India until General Motors stopped selling cars in India at the end of 2017. [13]

Wuling mini-trucks were exported in limited numbers to the United States from 2004 to 2005. SGMW USA, a Cobra Motors company, imported and distributed the vehicles. Those trucks were limited to off-road use (i.e. private property), and were primarily marketed as industrial and commercial vehicles. [31]

Related Research Articles

General Motors American automotive manufacturing company

General Motors Company (GM) is an American multinational corporation headquartered in Detroit, Michigan, USA that designs, manufactures, markets, and distributes vehicles and vehicle parts, and sells financial services, with global headquarters in Detroit's Renaissance Center. It was founded by William C. Durant on September 16, 1908, as a holding company, and the present entity was established in 2009 after its restructuring. The company is the largest American automobile manufacturer and one of the world's largest automobile manufacturers.

SAIC Motor

SAIC Motor Corporation Limited is a Chinese state-owned automotive design and manufacturing company headquartered in Shanghai, with multinational operations. A Fortune Global 100 company and one of the "Big Four" state-owned Chinese automakers, the company had the largest production volume of any Chinese automaker in 2014, making more than 4.5 million vehicles. Its manufacturing mix is not wholly consumer offerings, however, with as many as one million SAIC passenger vehicles being commercial vans.

SAIC-GM

SAIC General Motors Corporation Limited is a joint venture between General Motors Company and SAIC Motor that manufactures and sells Chevrolet, Buick, and Cadillac brand automobiles in Mainland China.

S-TEC or M-TEC is a low-displacement engine range co-developed by Suzuki and Daewoo Motors for use in micro and subcompact cars.

Chevrolet Spark Motor vehicle

The Chevrolet Spark is a subcompact hatchback city car produced by General Motors's subsidiary GM Korea.

General Motors India

General Motors India Private Limited is a partnership between General Motors and SAIC that is engaged in the automobile business in India. General Motors has 93% stake in this partnership and the remaining 7% is held by SAIC. It was the 5th largest automobile manufacturing company in India after Maruti Suzuki, Hyundai, Tata Motors and Mahindra. After 21 years of operations in India, General Motors announced that it will stop selling cars in India by the end of 2017, as a part of its global restructuring actions. General Motors India's primary focus is the manufacture and export of small cars and automotive components. Its export markets included Mexico and a few other Latin American countries until 2020. Its secondary focus is providing parts and related services for the GM vehicles that were sold in India.

Wuling Dragon Motor vehicle

The Wuling Dragon was a series of cabover microvans and kei trucks made by SAIC-GM-Wuling Automobile, the Chinese joint venture with General Motors of the United States of America. The Dragon is the successor of the earlier Liuzhou Wuling LZ110, which was based on the 1977-1984 Mitsubishi Minicab.

Chevrolet Sales India Pvt Ltd was a division of General Motors India which in turn was a joint venture of the US multinational corporation General Motors. Chevrolet was the 5th largest car maker in India after Maruti-Suzuki, Hyundai, Tata and Mahindra. General Motors stopped selling cars in India by the end of 2017. However, it continues to provide support for existing customers.

Baojun Chinese company

Baojun is a Chinese automobile marque owned by a joint venture of General Motors and SAIC Motor, SAIC-GM-Wuling Automobile.

Wuling Hongtu Motor vehicle

The Wuling Hongtu is a five-door, five- to eight-seater Microvan made by SGMW, a Chinese joint venture of SAIC with Liuzhou Wuling Motors Co and the American automotive company General Motors. Unlike the company's earlier Mitsubishi-based products, the Hongtu is an independent development. Codenamed LZW 6381B3, the Hongtu is also marketed as the Wuling Journey and Sunshine in Singapore, and Chevrolet N200.

Baojun 630 Motor vehicle

The Baojun 630 is a small family car/compact four-door notchback saloon and was the first car produced by SAIC-GM-Wuling through the Baojun brand. The 630 is manufactured in Liuzhou, Guangxi, China. It was launched at the 2011 Shanghai Auto Show, and went on sale in August 2011. A five-door hatchback derivative called the 610 was added to the range in April 2014.

Liuzhou Wuling Automobile Industry Co., Ltd. is a Chinese manufacturer of automobiles, officially established as a joint venture by Liuzhou Wuling Motors Co., Ltd. and Wuling Automobile Group Holdings Ltd.

Wuling Hongguang Motor vehicle

The Wuling Hongguang is a compact Multi-Purpose Vehicle (MPV) produced since September 2010 by SAIC-GM-Wuling. Between 2013 and 2017, it was marketed as Chevrolet Enjoy in India by GM India.

Wuling Sunshine Motor vehicle

The Wuling Sunshine is a five- to eight-seater Microvan made by SGMW (SAIC-GM-Wuling), a Chinese joint venture of SAIC with Liuzhou Wuling Motors Co and the U.S. carmaker General Motors.

Baojun 730 Compact MPV model from SAIC-GM-Wuling

The Baojun 730 is a five-door, seven-seat compact MPV produced by SAIC-GM-Wuling through the Baojun brand. The 730 was launched at the 2014 Auto China and developed at the SAIC-GM-Wuling Chinese joint venture specifically for the Chinese market. Baojun sold 250,000 units of the car in the first year of sales.

Wuling Rongguang Motor vehicle

The Wuling Rongguang is a five-door, five- to eight-seater microvan produced by SAIC-GM-Wuling.

Baojun 510 Motor vehicle

The Baojun 510 is a subcompact crossover SUV produced by SAIC-GM-Wuling.

Baojun 530 Chinese compact crossover SUV

The Baojun 530 is a two or three-row compact crossover SUV produced by SAIC-GM-Wuling (SGMW). Unveiled at the Auto Guangzhou 2017, Baojun 530 took design cues from the smaller 510 and is a successor of the 560, while the 560 remained on sale as a cheaper alternative. The crossover is an example of an extensive badge engineering; it was marketed under four different brands in several different markets.

Wuling Hongguang S3 Chinese SUV

The Wuling Hongguang S3 is a Mid-size SUV produced by SAIC-GM-Wuling, the joint venture of Shanghai Automotive Industry Corporation, Liuzhou Wuling Motors Co and GM China under the Wuling Hongguang product series.

PT SGMW Motor Indonesia is a subsidiary wholly owned by SAIC-GM-Wuling Automobile (SGMW), a joint venture between SAIC Motor, General Motors and Liuzhou Wuling Motors Co Ltd to handle their Indonesian operations. It is the first Chinese automotive company to build a manufacturing plant in Indonesia. Unlike their operations in China, SGMW Indonesia only utilises one marque, Wuling Motors, instead of both Wuling and Baojun. As the result, the subsidiary only used the Wuling Motors name and logo as the company identity. In 2018, Wuling Motors is the ninth largest automotive manufacturing company in Indonesia and the sixth largest passenger car manufacturing company in Indonesia by sales and production, according to the Association of Indonesia Automotive Industry (Gaikindo).

References

  1. "SGMW's Baojun Brand to Sell Passenger Cars in China". General Motors (Press release). 18 July 2010.
  2. "Raymond Bierzynski Appointed Executive Vice President of SAIC-GM-Wuling". media.gm.com (Press release). 12 October 2012. Retrieved 8 October 2013. Bierzynski served in leadership roles in China as president of the Pan Asia Technical Automotive Center (PATAC) from 2004 to 2007, and vice president of GM Asia Pacific and GM executive director of China Engineering from 2007 to 2009
  3. "About GM China". gmchina.com. 2013. Archived from the original on 4 October 2013. Retrieved 1 October 2013.
  4. 1 2 Raghav Narsalay, Ryan T Coffey, Cherry Lu Cui and John Gong (2012). "SGM Wuling: Bringing affordable vehicles to low-income consumers" (PDF). Accenture.CS1 maint: multiple names: authors list (link)
  5. For 2011 production figures and goal of 2 million units annually, see "Chevrolet Lechi to Be Sold Under Baojun Brand in China". GM Media: China (News release). General Motors. 15 August 2012.
    • For 2012 production figures, see "About GM China". gmchina.com. 2013. Archived from the original on 4 October 2013. Retrieved 1 October 2013.
  6. For $5,000 microvan, see Samilton, Tracy (18 February 2010). "GM's $5,000 Minivan, A Hit In China". npr.org. National Public Radio. Retrieved 12 October 2013.
  7. For "bread box cars," see Webb, Alysha (24 November 2012). "To see the future for GM in China look at the SAIC-GM-Wuling joint venture". chinaev.wordpress.com ("Alysha Webb's ChinaEV Blog"). Retrieved 8 October 2013. In late 2010, however, GM boosted its share to 44%, leaving Wuling with 5.9%.
  8. 1 2 3 Schifferes, Steve (17 May 2007). "Cracking China's car market". bbc.co.uk. BBC. Retrieved 29 November 2012. The (Wuling Sunshine) costs $3,700 (£1,872), has a 0.8 litre engine, have a top speed of 60 mph, and weighs less than 1000kg
  9. "SAIC-GM-Wuling Automobile Co. Ltd. (SAIC-GM-Wuling)". media.gmchina.com. 2013. Retrieved 9 October 2013.
  10. "五菱英文版" [Export Business: Brief Introduction]. sgmw.com.cn (in Chinese). 2013. Archived from the original on 17 October 2012. Since the first WULING vehicle was exported to Thailand in 1992, WULING vehicle has been exported to more than 40 countries and regions like Centre & South America, Middle-east, Africa, and South-east Asia.
  11. "Mitsubishi to assemble vans, trucks in China". Nihon Keizai Shimbun . Tokyo: 12. 1 March 1986.
  12. White, Joseph B. (20 April 2007). "For GM in China, Tiny Is Mighty; Wuling Venture Plans Expansion as Sales of Small Cars Surge". Wall Street Journal . Dow Jones and Company. p. A9.
  13. 1 2 Shirouzu, Norihiko (12 November 2010). "Corporate News: GM to Strengthen China Stake". Wall Street Journal . Dow Jones and Company: B2.
  14. "GM Retains No. 1 China Sales Rank". bloomberg.com. Bloomberg LP. 28 August 2011. Retrieved 12 October 2013.
  15. Webb, Alysha (24 November 2012). "To see the future for GM in China look at the SAIC-GM-Wuling joint venture". chinaev.wordpress.com ("Alysha Webb's ChinaEV Blog"). Retrieved 8 October 2013. In late 2010, however, GM boosted its share to 44%, leaving Wuling with 5.9%.
  16. 1 2 3 4 Shirouzu, Norihiko (18 November 2012). "GM ups capacity in no-frills China car market". reuters.com. Thompson Reuters. Retrieved 23 November 2012.
  17. 1 2 "SAIC-GM-Wuling Opens Passenger Car Production Base". media.gm.com (Press release). 18 November 2012. Retrieved 8 October 2013. Baojun products are targeted primarily at first-time car buyers in China’s second-, third- and fourth-tier cities.
  18. "GM buys old Chinese car factory". The Economic Times. Bennett, Coleman & Co. Ltd. 3 June 2005. Retrieved 30 November 2012.
  19. McGregor, Richard (20 July 2001). "GM looks to China for auto triple alliance". Financial Times . Pearson: 31.
  20. Fang Yan; Wills, Ken (22 November 2010), "GM unveils new brand in China, targets smaller cities", reuters.com, Thompson Reuters, retrieved 30 November 2012, Those big coastal cities are rapidly becoming less than a quarter of our business, and the real growth is in what we call tier three, tier four cities," Terry Johnsson, vice president of GM's China operations, told Reuters in an interview. "It wouldn't be unexpected to see 60 percent of the business in tier 3 and tier 4 cities (in five years).
  21. Mullich, Joe. "China's "Second-Tier" Cities Take Off". Special Advertising Section Presented by Cathay Pacific. The Wall Street Journal . Dow Jones and Company, Inc. Retrieved 4 June 2012.
  22. 1 2 "Chevrolet Lechi to Be Sold Under Baojun Brand in China". GM Media: China (News release). General Motors. 15 August 2012.
  23. 1 2 Li Fangfang (14 August 2009). "Wuling minis go global under GM Chevrolet brand". China Daily . Retrieved 2 December 2010.
  24. http://autonews.gasgoo.com/china_news/70017180.html
  25. "Wuling Motors Indonesia".
  26. "SAIC-GM-Wuling Automobile Co. Ltd. (SAIC-GM-Wuling)". GM China. Retrieved 1 November 2011.[ permanent dead link ]
  27. "GM 2012 global sales rise 2.9 pct on strong Chevy demand". Reuters. 14 January 2013. Retrieved 20 January 2013.
  28. Tang, Rachel (November 2009). The Rise of China’s Auto Industry and Its Impact on the U.S. Motor Vehicle Industry (PDF). Congressional Research Service. pp. 18–19. Retrieved 30 November 2012.
  29. from "just-auto.com" (23 November 2011). "CHINA: SAIC-GM-Wuling to Start Assembly of Chevy Move in Q3/2012". HighBeam Business. Chicago, IL (USA): Cengage Learning. Archived from the original on 5 October 2013. Retrieved 1 October 2013. Vehicle kits will be supplied by GM China's SAIC-GM-Wuling (SGMW) joint venture
  30. "GM Egypt to Produce Chevrolet Move Passenger Van in 2012" (PDF). GM Egypt (Press release). 13 December 2011. Retrieved 10 October 2013. GM Egypt plans to produce about 5,000 units annually for sale in Egypt starting third quarter of 2012. Vehicle kits will be supplied by GM China’s SAIC-GM-Wuling joint venture. [...] The Chevrolet Move is based on the Wuling Rong Guang,[ permanent dead link ]
  31. "MiniTruck Products". SGMW USA MiniTrucks, Off Road Utility Vehicles and Low Speed Vehicles (LSV). SGMW USA. Archived from the original on 30 September 2007.

See also