SAIC-GM work together to enter the Indonesian joint venture grab rixiche site

Posted on 2/2/2015 2:47:41 PM

General Motors will expand the scope of cooperation with partners in China, SAIC, a joint venture company in Indonesia, production and sales of Wuling brand models. This year the project is expected to start building the plant in operation within two years, to reach an annual capacity of 150,000.
SAIC-GM joint march in Indonesia
Informed sources told the media recently that the January 30, General Motors and SAIC had sent a delegation to Indonesia to discuss the establishment of a joint venture in local matters, covering the production and marketing projects Wuling brand MPV / minivan, the investment will reach 7 billion. The project was called the Chinese president, GM money Wellcome "important joint venture" in the next few days the two companies will announce details.
It is reported that SAIC-GM-Wuling will hold a 80 percent stake in the new joint venture, while SAIC is holding 20%. SAIC-GM-Wuling's equity ratio structure, SAIC holds 51.1 percent, GM holds 44%, holds 5.9% Wuling (Editor's Note: SAIC once $ 500 million acquisition of 0.97% stake in GM, so the above three figures the sum is not 100%). This is equivalent to the new joint venture company holding more than 60% by SAIC, GM stake of about 35%.
GM and SAIC will be held in August 2015 began construction Wuling factory in Indonesia, is expected to go into production in 2017, with an annual capacity of 150,000 vehicles. The major products are Wuling brand MPV / minivan to RMB 30,000 (US $ 4,800) of the sales price. Future car production in Indonesia, will radiate to other Southeast Asian countries.
General Motors now has a subsidiary in Indonesia, production and sales of the Chevrolet Spin compact MPV. Wellcome appears in money, it is a complementary relationship between Chevrolet and Wuling brands rather than competition between the two, there are differences from pricing, product quality and functionality.
Its said that Wuling focus is functional, attractive appearance and economic value style, these are also Wuling success factors in China. Indonesia has a population of 240 million, the future has great market potential.
Wellcome undisclosed money will be located in Indonesia micro-surface model name, or the market price of the new car. And a GM spokesman declined to confirm these reports.
Potential of the Japanese car site
According to the latest statistics of relevant institutions, Indonesia has over Thailand as ASEAN's largest car market, the future generation of Thailand is also expected to become a new automobile manufacturing center in Southeast Asia in 10 years. ASEAN Automotive Federation, Indonesia and Thailand Automotive Industry Association Gaikindo Industries Alliance (FTI) data show that in 2014 the Indonesian automotive production was 1.3 million, representing an increase of 7% in 2013, while automobile production in Thailand fell by 23 percent year on year to 1.88 million.
Indonesia's new government is still implementing a series of reform measures to promote the development of the local automotive industry, including attracting General Motors, Tata Motors and other car companies set up factories in the country. Analysts said the next 7-10 years of vehicle production in Indonesia may be more than Thailand.
But Southeast Asia is still an important market for Japanese cars, foreign media said GM and SAIC to enter Indonesia will face competition Toyota and other Japanese car - Japanese now holds 9% of the Indonesian automobile market share. Toyota tried to use its small car Daihatsu and Suzuki brands compete for market share, and some products priced under $ 5,000; and Nissan Datsun resurrection cheap car brand, is also waiting in the wings, the Indonesian market as the focus of the brand.
Wellcome Qian said the new joint venture company focused on locally manufactured vehicles will eventually export to overseas market sales outside Indonesia.

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