In the sales volume stakes GM are apparently feeling the heat from VW, so GM China are planning to push the Chevrolet brand under the advice of Tim Lee, the new GM China Chairman. One problem here is that greater sales don’t always equal greater profits. Volkswagen is likely gaining greater sales profit from its China VW sales than GM is garnering from its million plus sales of Wuling minivans that are sold for circa 10,000USD or less.
From Automotive News, Via Bloomberg.
General Motors Co. said it plans to step up promotions of the Chevrolet brand in China and bolster the lineup of GM’s SUVs to defend its lead in the world’s largest auto market.
“We got still a lot of mother brand-building to do for Chevrolet and we will resource that appropriately and get that job done,” China Chairman Tim Lee, who was appointed to the newly created role in August, said in an interview in Shanghai last week. “If there were one thing that I wish we had done different, I wish we had a better offer” of smaller SUV models.
Boosting Chevrolet sales in GM’s largest market is crucial to CEO Dan Akerson’s goal of establishing the brand as the automaker’s global volume marque. Chevy sales growth in China this year has lagged behind the industry’s 14 percent, while SUV deliveries have surged 45 percent, according to data from the company and China Association of Automobile Manufacturers.
The Chevrolet brand currently consists of the value Sail sedan/hatch, Aveo sedan/hatch, Cruze sedan/hatch, the aging Epica, the Malibu and also the Captiva SUV. The Camaro and Volt are only sold through selected dealerships.