The United States and the United States headquarters "lean" as the core of the reorganization of ideas contrary to the road, in the last Sunday in August, GM in China has carried out an accidental expansion. On this day, FAW-GM Light Commercial Vehicle Co., Ltd. was established in Changchun. The new joint-venture company looks very well-positioned: the operating period is 30 years, the registered capital is 1.2 billion yuan, and GM and its new partner, China FAW Group, each take up 50% of the shares. But in the operating model, it is extremely independent. GM does not introduce new models. The main product manufactured and sold is still the classic brand of China FAW: Liberation. Ford Motor Co., Ltd., Nissan Motor Co., Ltd. and other small multinational giants that are involved in the passenger vehicle and light commercial vehicle market in China have put into production related models. Why does General Motors rush to form an alliance with another heavyweight partner when only providing such important parts as quality control systems and other management systems and engines? In fact, this joint venture is of great strategic importance to GM's China operations. GM has always devoted all of its important resources to the Shanghai GM joint venture company, but Shanghai Volkswagen, another joint venture company of SAIC Motors, is currently the sales champion in the passenger vehicle market. At the same time, through overseas acquisitions and mergers with the Nanjing Automotive Group, SAIC's own brands Rover and the MG have gradually become the Shanghai General Motors can not be ignored opponents. From the perspective of strategic planning, FAW is likely to become the weight of SAIC's checks and balances. If you live in harmony, GM will form a clear and reasonable division of labor in the two market segments in China. Once there is a serious disagreement between GM and SAIC in terms of values ​​and future strategic direction, FAW will become a realistic alternative. Don't forget how Peugeot and Fiat had gone out of business after losing their only Chinese joint venture partner. In short, SAIC is still the most important partner of GM in China. FAW-GM is a clever strategic layout where GM's business in China can be attacked and retired. In addition, at the operational level, the new joint venture will enable GM to break through its bottleneck in China's passenger vehicle market. Given the fierce competition, the passenger vehicle market has very limited room for growth. According to data from JD Power Asia, the sales volume of China's light commercial vehicle market in the first seven months of this year was nearly 2.4 million units, an increase of 32%, of which sales growth in July was as high as 58%. Moreover, various roles, such as state-owned enterprises, private enterprises, and joint ventures, make the competition in the light commercial vehicle sector relatively complete. Its high degree of marketization is conducive to the general use of its management capabilities and marketing advantages. The joint venture company SAIC-GM-Wuling has benefited from the general output management system and has been the sales champion for the mini-commercial vehicle market for three consecutive years. “Some companies that currently have leading sales in the light commercial vehicle market are not very strong in terms of management and management.†Peng Bo, an automotive analyst at Roland Berger International Management Consulting, told the journal, “This market is still rising overall. FAW-GM still has a chance." The question is: Is FAW Group the ideal partner in this field? The sales volume of light trucks of the liberation brand of FAW Group rose from the eighth to the sixth in the first seven months of this year to 90,000 units. However, Changan Group sold 420,000 units in this segment and nearly 290,000 units in Foton. Moreover, FAW Group's light truck business is diversified between the two subsidiaries of FAW Harbin Light Vehicle Co., Ltd. and FAW Hongta Yunnan Auto Manufacturing Co., Ltd., which makes management difficult. More importantly, the corporate culture of FAW Group is completely different from the open and international style of SAIC Motor, which is commonly known by GM. “FAW Group has a well-known brand. I think they can do better than they do now. If we cooperate with GM, we will succeed.†Luo Ruili, Executive Vice President and International Operations Director of General Motors, told the journal: “We The joint venture will not be forced to adopt the universal model, it will be a disaster." It is reported that GM previously negotiated with more than FAW Group. It had contacted many companies such as Wuling Group, JAC, and Futian. As General Motors cannot provide excellent light commercial vehicle products, it is all gone. However, the real contribution to the joint venture is still its future role: FAW Group is the only company that has the potential to cooperate with GM in the passenger vehicle business. This is crucial for the GM China strategy. Gp100 Cone Crusher Parts,Cone Crusher Machine Spare Parts,Eccentric Bushing Suit Gp100 Cone Crusher,Eccentric Bushings Gp100 ShenYang TianYi Mining Machinery Co., Ltd , https://www.tianyimining.com
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