GM Commits to China, Promises Aggressive Plan

Left pretty much unattended over the past few years, the Chinese market has slowly grown to become the largest in the world. For car makers the likes of GM, China meant salvation in 2009 (and since), so leaving it to tend to its own needs in the future would be a mistake.

Planning to build some more on the opportunities in the new auto Promised Land, GM announced this week the start of a very aggressive program to take over the Chinese market. Having already promised to launch 20 new or redesigned vehicles over the next two years into China, the car maker detailed, through CEO Dan Akerson, the measures it plans to take in order to insure that up is the only way for the car maker.

“GM will continue to make China one of our priorities. We plan to introduce more than 20 new and upgraded models over the next two years, strengthen our local product development capability, expand our cooperation and sharing of technology with local partners, and lead in the introduction of new energy vehicles including the Chevrolet Volt extended-range electric vehicle,” said Akerson.

“All of this is part of GM’s long-term commitment to the sustainable development of China’s automotive industry.”

The plans GM has for the local market rely heavily on the 11 joint ventures it operates on the local market and with which, in 2010 sold a record 2.35 million vehicles.

GM will have, at least in the short term, to plan its steps very carefully though. The strengthening yuan will most definitely force GM to cutting cost, while at the same time keeping its commitment to the country.

And, since the local market is close to being conquered, GM will turn its attention to exporting the Chinese-made cars. New manufacturing facilities, like the one in Liuzhou, are also part of the expansion plans GM has for China.