AutoBeta(AutoBeta.net)07/04 Report--

After the sales peak, GM's business in China has also been affected by a decline in new car sales in China, where GM sold 3.09 million new cars last year, down 15 per cent from a year earlier. In 2020, GM's sales fell further.

On July 3rd, General Motors released its second-quarter retail sales in China. GM sold 714000 vehicles in China in the second quarter, up 55.1 per cent from a month earlier, but down 5.3 per cent from 754000 in the same period last year, the company said. GM's sales in China fell 43% in the first quarter as a result of the epidemic.

Among the major brands GM operates in China, Buick and Wuling saw sales rise, while Chevrolet and Baojun fell the most.

In the second quarter, Buick brand sales in China totaled 213500 vehicles, up 7.8 per cent from a year earlier. In 2020, Buick made adjustments in two major areas: one is to restart the sale of four-cylinder engines, and the other is to speed up the release of new products.

The return of a number of SAIC GM's main cars to the four-cylinder version also means that the move to provide only three-cylinder engines is not popular with consumers and has led to a decline in sales. The four-cylinder version is an adjustment of SAIC GM's product strategy. Among them, the Buick Yinglang model 1.5L model sells for 11.99-125900 yuan. This 1.5L four-cylinder engine has a maximum power of 113hp (83kW) and a peak torque of 141Nm, which meets the national 6b emission standard and matches a six-speed manual self-integrated transmission. SAIC GM's other models with only three-cylinder engines of the same class will also be sold with a four-cylinder version in the future.

In terms of new products, Buick is making efforts in the MPV market, and the new GL8 series is on the market, including the onshore official cabin version, es Luzun and the Avenir Avia family. In the second half of the year, the Buick Onkway S model will also be available.

The Chevrolet brand sold 77600 vehicles in China in the second quarter, down 27.7% from a year earlier, making it one of SAIC GM's biggest declines. Chevrolet sold 418000 vehicles last year, down 19.6% from a year earlier.

In addition to the sluggish sales caused by the main model equipped with three-cylinder engine, the internal friction and price war of the internal brand have further dealt a blow to the Chevrolet brand.

By launching new products, Chevrolet is seeking to stop the decline in sales. Medium and large SUV Chevrolet trailblazer has been listed, the price is 25.99-329900 yuan, the main competitors are Toyota Hanlanda, etc., but many consumers believe that without substantial price concessions at the terminal, it is difficult for the trailblazers to open up the market.

Cadillac sold 58500 vehicles in the second quarter, down 12% from a year earlier. Affected by a series of problems such as brand market strategy, word-of-mouth, products and so on, Cadillac's price-for-volume approach is unsustainable, which not only leads to a decline in brand premium, but also loses its title as the champion of second-tier luxury sales, which is surpassed by Lexus.

Despite the decline in new car sales in China, the luxury car market continues to grow against the trend, with luxury car retail sales rising 28% year-on-year in May alone, according to a report by the Federation of passengers. Therefore, in this case, the double-digit decline in Cadillac sales also reflects the relatively depressed market of the brand.

At present, Cadillac further strengthens the layout of the middle and low-end luxury car market. Following the launch of the CT5 model, Cadillac CT4 is also officially on the market, the price of which is lowered to 23.97-259700 yuan. The new car is equipped with 2.0T variable cylinder engine and 8AT gearbox. After "price for volume", Cadillac tried to maintain sales by "lowering its price".

The biggest contributor to sales was SAIC GM Wuling, where Wuling sold 269800 vehicles in the second quarter, up 9.7% from a year earlier, while Baojun sold 94100 vehicles, down 30.7% from a year earlier. As the MPV market is not as expected, Wuling and Baojun brands are also seeking brand upgrading and transformation, while developing the mini electric vehicle market.

In response to its recent performance in China, GM China said that through intensive product launches, the product lineup has been further improved and optimized. At a time when sales continue to decline, GM's business in China urgently needs to solve the problem of internal friction among the three major brands, Buick, Chevrolet and Cadillac, as well as the decline in brand premium and market competitiveness in recent years.

In March this year, GM changed its coach in China. Since April 1, 2020, Mr. Julian Blissett, Senior Vice President of General Motors International Operations, has been the President of GM China, managing all GM operations in the Chinese market.

With new executive appointments and intensive product launches, GM is already looking for ways to stop falling sales in China, and whether it works still needs to be tested by the market.

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