General Motors’ pavilion was opened at the Shanghai Expo yesterday. The U.S. automaker plans to run the pavilion until the end of October.
SHANGHAI - Ray Young, General Motors vice president for international operations, said there will be a renewed focus on GM Daewoo Auto & Technology, the Korean unit of the giant U.S. automaker, to increase its domestic market share after achieving strong export growth.
“Korea has a lot of potential for growth in the domestic market. There is no doubt we need to grow our market share in Korea,” Young told reporters at a media event here.
GM Daewoo sold about 87,000 vehicles in Korea in the first nine months of this year, up from 76,000 units a year ago, but its local market share is only 7.7 percent. About 90 percent of the vehicles produced by GM Daewoo in Korea are exported.
GM Daewoo recently launched its first large-sized luxury sedan, the Alpheon, and will introduce seven new models before the end of 2011, including ones carrying the Chevrolet badge.
Young said that GM Daewoo is becoming important in terms of developing new vehicles and providing global supplies of the Chevrolet Cruze and Chevrolet Spark. It will also develop and produce Chevrolet’s new compact sedan, the Aveo.
Joseph Liu, executive vice president of Shanghai General Motors Corp., a joint venture of GM and Shanghai Automotive Industry Corporation, said that GM Daewoo was playing a crucial role in the Chinese auto market, the world’s largest.
Liu said that the relationship with GM Daewoo has greatly benefitted both sides as GM Daewoo supplies a large part of its exports to GM’s China operations, which in turn pay royalties to the Korean unit.
“About one-third of GM Daewoo’s complete knock down [CKD] units are exclusively for the Chinese market, while other models, such as the Winstorm, is being sold under the Chevrolet brand,” said Liu. “GM Daewoo is a major partner for business in China.”
Shanghai GM has posted sales of 1.8 million cars in China during the first nine months of this year. Shanghai GM is the largest car company in China with a 13.4 percent market share last year and is aiming for selling 1.8 million units this year to gain a market share of 13.5 percent.
“Over one-third of GM Daewoo’s exports, or about 400,000 units, are already coming to China. The growth of the Chinese market and increased sales of Shanghai GM will therefore mean increased exports and growth of GM Daewoo,” Liu said.
At its pavilion at the Shanghai Expo, GM is showcasing its concept vehicle, the EN-V, an emission-free, two-seat urban mobility vehicle that uses two electric motors, which will be developed by 2030.
Asked about the relationship with LG Chem, which is supplying rechargeable batteries for Chevrolet’s Volt electric car, Liu said that a firm relationship will be maintained as he sees LG as the top competitive electric car battery supplier in the world.
“There are some Chinese battery makers that are suppliers to domestic brands, but compared to the technology and achievements of LG Chem, I feel that these companies are about five years behind,” Liu said.
