GAC to revolutionize dealership model for its Trumpchi own brand

Gasgoo.com (Shanghai December 24) - Thanks to sales of the new GS5, the Guangqi Trumpchi own brand's performance this year has been very strong. The own brand's sales look set to exceed 6,000 units in December. In order to further increase sales, GAC Group General Manager Zeng Qinghong announced several ambitious plans to revolutionize the own brand's dealerships, the Guangzhou Daily reported today.

According to Mr. Zeng, GAC will move away from the traditional model of 4S dealerships for its brands' sales outlets. In its place, GAC will use a 'one to three' system, where there will be one repair and maintenance center for every three sales outlets. In addition to the Trumpchi own brand, the Guangqi Mitsubishi and Guangqi Fiat joint venture will also use the same format for their dealership networks. GAC Motor General Manager Wu Song also confirmed the plans, adding that this structure will help make management of maintenance work more efficient and ultimately help decrease costs around the board. "There are several cases of this kind of [sales structure] being successful overseas," Mr. Wu remarked.

Mr. Wu also commented on what GAC's future sales outlets will look like. "In actuality, the current state of the Chinese automobile market is not nearly as good as it was a few years ago, [therefore] sales network expansion plans should adhere to these [realities]," Mr. Wu said, stating that large and luxurious 4S dealerships may no longer be standard in the country. According to Mr. Wu, there will be around 120 Trumpchi dealerships by the end of the year, compared to just over 50 4S outlets at the end of 2011. That number looks set to increase to 220 by the end of next year, when virtually every prefecture-level city in the country will have a Trumpchi dealership. Mr. Wu added that new compact dealerships and satellite outlets will help further increase the influence of the Trumpchi brand.

GAC has announced a target of 65,000 sales for its Trumpchi brand in 2013. A total of 32,000 Trumpchis are expected to be sold by the end of this year.