The sale of Opel made GM more reliant on China.
On September 24, Alan Taub, GM’s Vice President of Global R&D, announced in Shanghai that the GM China Academy of Sciences, officially established on that day, will become the second largest R&D center in the world. Prior to this, among the 12 R&D centers worldwide, the German R&D center was the second largest.
"The establishment of the Sole Proprietor Institute was announced two years ago, but it has not been heard that it is the second largest in the world," said a general insider.
"General Motors has just completed its restructuring recently." Tao Weilun explained the changes in the strategic position of the GM China Research Institute. After the reorganization, our business is divided into two major parts, one is the North American business and the other is the international business that is our international operation. The Department of International Operations is based in Shanghai and is responsible for all operations outside of North America. North American operations are headquartered in Detroit, where they have 84 years of research experience.†Tao Weilun said that the more and more important Chinese market should be the world’s largest The two major R & D centers.
New GM insiders said that due to the cancellation of regional headquarters in Europe, Asia Pacific and Latin America, in fact, the Shanghai International Operations Department is equivalent to the new headquarters of the new GM in the world, "the Chinese market has been commensurate with its market impact. In the international business segment, China has become one of GM’s largest global automotive markets, and our business in China covers almost the entire industry chain, including parts supply chains and engineering development.â€
In fact, unlike the global contraction, GM is conducting a new round of subordinates in the Chinese market.
On the last Sunday in August, General Motors announced that it had established a partnership with FAW to establish FAW-GM Light Commercial Vehicles Co., Ltd. in Changchun. This is the first time that GM has announced its entry into the commercial vehicle sector in China.
At the same time, the negotiations between GM and the Liuzhou government are still in full swing. GM had previously planned to purchase SAIC-GM-Wuling’s shares from the Guangxi government. Previously, the purchase of SAIC-GM-Wuling’s shares was more of a statistical necessity. GM, which only holds 34% of shares in SAIC-GM-Wuling, included all SAIC-GM-Wuling’s equity in its own statistical statements and Toyota’s competition. It’s a bit far-fetched. Therefore, GM has been trying to acquire the shares held by the Guangxi government. The reporter recently learned that SAIC-GM-Wuling has revealed plans to build a mid-size sedan. Making a mid-size sedan is one of the conditions for the exchange of shares between GM and the Guangxi provincial government. This means that there has been progress in GM’s increase in shares. .
The reporter learned that GM’s series of China’s expansion has not been as simple as statistical measures or simply expanding in China. In addition to occupying the Chinese market, GM also plans to base itself on China and radiate the Asia Pacific. The business in North America and Europe is powerless, GM must find new growth points, and the Asia-Pacific market is the best-known market. However, GM does not have suitable products and there is no low-cost R&D center dedicated to the Asia-Pacific market. To develop products, GM must cooperate with domestic joint venture partners to develop emerging markets.
On June 10 this year, SAIC issued an announcement saying that in order to raise the energy level of SAIC Motor’s international operations and set up a foreign investment and financing platform, the company plans to invest in and establish a wholly-owned “Shanghai Auto Hong Kong Investment Co., Ltd.†with a registered office in the Hong Kong Special Administrative Region. , registered capital of 990 million US dollars. The reporter learned that SAIC's establishment of a Hong Kong company is likely to be the development of emerging Asian markets together with GM.
According to the GM's existing layout, even if it cooperates with a Chinese partner, it can entrust the existing system development without the need to establish a wholly new wholly owned research institute.
GM's pan-Asian technology center, which has a joint venture in China, is basically equipped with development capabilities and has been jointly developed with the General Global Technology Center. SAIC-GM-Wuling is equipped with low-cost mini vehicle development capabilities. The problem is that the current two R&D centers are joint ventures, which makes GM relatively passive if it relies entirely on two R&D centers.
GM relied on existing R&D centers. There is another serious problem. The technical centers of Pan Asia and SAIC-GM-Wuling are more about the development of products. Although, when Pan-Asia was established in 1997, Pan-Asia and Shanghai General Motors were independent legal entities, but after the adjustment in 2003, Pan-Asian Asia no longer took over Shanghai SGM's operations, including those of its brothers, from the business structure. Has become the Shanghai GM's product R&D center. "Even if we take over businesses other than Shanghai GM, we need Shanghai GM." Shanghai GM is a joint venture company, which means that once GM models with global demand need to be developed in China, The consent of SAIC needs to be checked in the long term.
In addition, Pan Asia and SAIC-GM-Wuling Technology Center, which are positioned as product features, are more focused on R&D than product development, and will not develop new technologies, which are so-called “advanced technologiesâ€.
According to Gan Wenwei, President of GM China, the focus of the newly-established research institute and Pan-Asian development is different. Pan Asia focuses on the development of products currently available to the market, while the General Research Institute of China tends to study Forward-looking automotive technology, looking forward to the future market trends.
Du Jiangling, president of the General Motors China Academy of Sciences, told reporters: “As part of the global R&D system of General Motors, the research areas of the GM China Academy of Sciences will mainly focus on three major areas. One is the advanced drive system technology related to the engine. One category is related to vehicles, such as large-scale automobile traffic safety technology and consumer-oriented forward-looking automotive R&D. The third category is related to materials, such as battery materials, magnesium alloys and other lightweight materials, etc. These three major categories are our focus." Car Door Handle for Toyota
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