GM to Open 100 Baojun Dealers in 2011

General Motors and SAIC are planning to open no less than 100 dealerships belonging to the Baojun brand in China in 2011, before the two companies will introduce the Baojun 630. Speaking to Reuters, Matthew Tsien, executive vice-president at the venture, confirmed that the two partners are hoping to open the stores in smaller cities, as the newly-created brand tries to compete against affordable models sold under domestic badges.

“We will set up a new sales network dedicated to Baojun,” Matthew Tsien explained. “We have a staged plan for Baojun dealers. Obviously we will grow as the portfolio grows and as the volume of sales grows, but initially will probably be in the hundred-plus range in terms of dealer numbers.”

The first model to be sold under the Baojun brand is the 630 which will arrive in the dedicated dealership network in the first months of 2010. The car comes in the form of a compact sedan and is powered by a GM powertrain specifically configured to meet local emission standard and comply with Euro IV regulations.

“We carefully studied the market and customers,” said Kevin Wale, President and Managing Director of the GM China Group. “Quality, design, fuel economy and durability were made a focus to appeal to local car buyers, particularly first-time buyers in the nation’s second- and third-tier markets.”

Although General Motors hasn't released pricing for the Baojun 630, expect the car to be pretty affordable, as this is basically the main purpose of the newly-established brand which will continue to exist in China together with other divisions belonging to GM, including the mainstream Chevrolet.