GM and China Go a Long Way
As far back as the 1910s, General Motors had some form of presence in China. It was Buick that helped plant the seeds of GM in the Middle Kingdom, which explains why the name holds prominence over there. GM was also instrumental in the growth of the Chinese auto industry way back in the ’90s.
Again, it was Buick that led efforts in China, in cooperation with Shanghai Automotive Industry Corporation, better known today as SAIC. Today, the SAIC-GM joint venture doesn’t just help the American automaker’s presence in China, but it has grown to include even more brands.
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An Unprecedented Move
Recently, the two companies renewed their joint venture in a signing ceremony held on August 5. There, SAIC and GM agreed to extend their cooperation for the next 20 years, all the way through 2047. It’s a move that’s the first of its kind in the country, and with 30 years of working together, this partnership will collectively last 50 years at the very least.
“Today’s agreement reflects our shared confidence in SAIC-GM and its long-term growth potential. We are committed to strong performance in the China market, and we see meaningful opportunities to compete in select international markets: the Middle East, Africa, South America, Mexico and Asia-Pacific,” said John Roth, GM Senior Vice President and President of GM China.
This isn’t just GM’s way of effectively guaranteeing its place in the Chinese auto industry. With SAIC’s reach, especially around Asia, it should bolster the stock of both automakers. GM is looking like SAIC’s additional avenue to export more models out of the domestic market. It’s something the Chinese conglomerate needs, too, given that home market sales have reached a saturation point.
Keeping Buick Alive
The extension of the agreement does mean another thing: Buick isn’t going away for a long time. While sales have been steady but unspectacular in the U.S, the American brand continues to thrive and evolve in China. Granted, the new wave of Chinese cars has eroded the marque’s once-dominant status, but it’s still held in high regard.
With that, SAIC-GM has a lot in store for Buick in the coming years. Buick’s China-only Electra sub-brand will be further expanded, and given ‘China Speed,’ the future generations of these models are pretty much guaranteed at this point. The Electra lineup currently consists of battery electric vehicles, plug-in hybrid vehicles, and extended range electric vehicles. At the same time, Buick as a whole still offers pure combustion vehicles and is still continuously updating these.
There’s also a special mention of the Buick Electra E7, the brand’s top-selling model. The Electra E7 will soon start being exported to select markets, expanding Buick’s reach beyond American and Chinese borders, which will hopefully bear fruit for both GM and SAIC. SAIC-GM will be putting greater focus on Buick and Cadillac, with the promise of launching 30 new models before the end of the decade. If it all goes to plan, those might be for export, too.
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