GM’s Baojun will help it reach new price markets in China

A strong element in GM’s strategy for growth has been the emerging market in China. With aggressive expansion over there, GM just launched its seventh Chinese brand; Baojun. Critics are wondering however, if China might be on the road to overexpansion in the Chinese market, as it had been in the US before shedding four of its eight brands.

Regional sales and marketing boss Susan Docherty warns that this is not the case. “In the United States, when we only had an industry that was, my gosh, 10 or 11 million units, for us to have eight brands … became increasingly difficult. We ended up with brands that were competing against each other,” Docherty said. “In the Chinese market, with an industry that’s going to continue to grow and grow, there are price segments that we were not going to be in.”

With the Baojun, GM is going after the lower-tier buyer who is seeking local Chinese brands. Chinese customers attracted to Chevrolet and the American brands tend to lean more toward the higher-educated buyer.

The Baojun line is targeted to grow to four models. GM launched Baojun in July 2010.

– By: Stephen Calogera

Source: Free Press