Hoping to maintain its role as the Chinese market’s sales leader, General Motors has opened up a new assembly plant primarily aimed at the next generation of buyers in cities just beginning to share in China’s fast-growing economy.
The factory, in the southern city if Liuzhou, will be used to build the Baojun 630 midsize sedan. The Baojun brand was launched just over a year ago as a joint venture between General Motors and its existing Chinese partners, Shanghai Automotive Industries Inc., or SAIC, and Wuling Motors. The three have been operating jointly as SGMW.
Until now, China’s automotive boom has largely focused on major cities along the Pacific coast, including Shanghai and Beijing. But demand is rapidly growing in central and western “Tier 2” and “Tier 3” cities just beginning to share in the country’s economic expansion. Baojun is especially focused on first-time, entry-level buyers.