SAIC-GM-Wuling not to change sales target in 2008

Shanghai, June 20 (Gasgoo.com) Soaring raw material prices and many other things have influenced the production and sales of China's carmakers in the first half of this year. SAIC-GM-Wuling Automobile (SGMW), one of the leading mini vehicles manufacturers in the country, is no exception, but it will not adjust the sales target of 600,000 units this year and will probably mark up its vehicle prices.

A sales executive of SGMW recently said that in the first five months this year the company sold 320,000 mini vehicles, up 2.6% year on year, and occupied 47% market share in China. SGMW aims to sell 600,000 mini vehicles in 2008, and will manage to attain this target, though the market situation is uncertain in the second half of this year. The carmaker has not ruled out the possibility of raising the prices of some of its vehicles if the raw material costs continue to surge and meanwhile the vehicle quality remains a top priority.

SAIC-GM-Wuling, established in 2002, is a joint venture involving GM, Shanghai Automotive Industry Corp (SAIC) and Liuzhou Wuling Auto. GM owns 34% of the company, SAIC 51% and Wuling 15%. The venture produces minivans and other small commercial vehicles under the Wuling brand. The Chevy Spark is the only GM nameplate the venture produces. GM could use Wuling to compete with the $2,500 Tata Nano, currently the world's cheapest min-car.

One of the key factors behind SGMW's sales achievement in January to May is its widespread county-level network, which has covered more than 30% of the 2,000-plus counties in mainland China. This vast network includes 4S stores, 2S stores and even smaller shops that can meet the needs of the customers. In 2007, SGMW sold 548,945 minivans, with Wuling Light as the best sold model.