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After shutting down several European and American companies, GM still reported a favourable attitude toward the Chinese market. Yesterday, GM China and FAW Group confirmed that the two parties have reached a preliminary agreement to cooperate in the field of commercial vehicles in China. An enterprise named "FAW-GM Light Commercial Vehicle Co., Ltd." has entered the pre-nuclear stage of the name of SAIC.
The two sides did not disclose more details and progress of the cooperation. However, there is news that the cooperation between GM and FAW will use the platform of FAW Hongta to set up a joint venture. General China related personnel said that the cooperation with FAW will only be in the commercial vehicle sector and will not conflict with SAIC's existing passenger car cooperation.
Previously, GM has cooperated with SAIC in the area of ​​passenger cars and minibuses. Shanghai GM and SAIC-GM-Wuling accounted for 13% of GM's global sales.
Jia Xinguang, a well-known auto industry analyst, said that the current growth potential of China's commercial vehicle market is far greater than the US market, and GM has been seeking breakthroughs in commercial vehicles in China. Wang Liusheng, an automotive industry analyst at China Merchants Securities, believes that if the cooperation is successful, it will make GM's product structure in China more complete, and GM may introduce light trucks and pickup trucks into this joint venture company. "This will not only help GM find new growth points in China's commercial vehicle market, but it may also relocate its factories in Europe and the United States to China to achieve industrial transfer under the crisis."