SAIC-GM-Wuling develops new van models for business customers

The move is aimed at meeting increasing domestic demand for cars designed for the use of families as well as small businesses, says John Zeng, a Shanghai-based market analyst for Global Insight. These cars are typically bigger than mini vans but smaller than seven-seat light buses, he adds.

Trial production of the first model, codenamed N300, is slated to start in SAIC-GM-Wuling's Qingdao plant in the middle of this year, the source says.

The source adds the car is a seven-seat van carrying 1.2- and 1.4-liter gasoline engines. The car is based on the platform of the Hongtu mini van but is longer and wider than the Hongtu. Its specifications are unknown.

The Hongtu, with a wheelbase of 2500 mm, was designed by Shanghai GM's r&d facility Pan-Asia Technical Automotive Center and was launched in early 2007.

Information from the Qingdao government indicates SAIC-GM-Wuling is now building new production lines in Qingdao for the N300, with annual capacity of 150,000 units under two shifts. Output is expected to reach full capacity in 2010.

The second and the biggest model, codenamed CN100, is another seven-seat van even bigger than the N300. Its shape is similar to that of Jianghuai Automobile Co.'s Refine van, the source says. Sales will start in the second half of 2009.

"CN100 will also carry 1.2- and 1.4-liter engines. It will be positioned as a business van and mainly target at business car demands from medium and small-sized enterprises," the source says.

The source adds SAIC-GM-Wuling will rely on low price and fuel economy for sales of the car, adding that the price will be about only 70,000 to 80,000 yuan ($9,919 to $11,336).

The source also says the company is planning a third van with codename V300, but the car will be smaller than CN100. No further details are available at present.

To reduce costs, all three new cars are being developed by SAIC-GM-Wuling itself, and the cars will carry Wuling's badge, the source adds.  

SAIC-GM-Wuling is a joint venture between General Motors China, Shanghai Automotive Industry Corp. and Liuzhou Wuling Automotive Co. The company says it sold 552,788 vehicles in 2007.