GM Announces $800 Million Deal to Send Enclaves to China
In a move that might inject a bit of positive news into the unfolding drama of the UAW strike, General Motors has announced a deal that will send $800 million worth of US-built vehicles and parts to China over the next four years.
The deal is the result of a joint venture between GM and its Shanghai affiliate and will bring Buick’s Enclave CUV overseas to strengthen the company’s already successful Chinese line-up. The Enclave will be the most recent GM product to be offered to the foreign market, joining Cadillac and Chevy products, and bolstering what is already China’s best selling brand, Buick.
GM projects to sell more than 1 million vehicles in China this year, and hopes the Enclave (which has fostered robust demand at home in the states) will appeal to a more and more cosmopolitan Chinese car buyer. GM Shanghai President Ding Lei hopes that the Enclave will, “strengthen our lineup and enable us to continue to meet the changing needs of our growing base of customers.
Comments
MikeK
Good. Built in the US and shipped to China, not the other way around. GM got this one right.
SuperSkyline89
Ya, until they find out that someone somewhere in China is already making Enclave knock-offs
Ducati Minor
If the UAW keeps whining, I'd rather Chinese build them.
Don
Well, there's a first: a demand for exported US autos.
Excellent.
Jeff
Great. First we export our jobs, then we export our conspicuous consumerism.
Ducati Minor
At least the General is building a product there's demand for. The Enclave is too big for my taste, but it's a nice crossover--much moreso than the Lexus RX300 or Acura MDX. The Enclave is what the Lucerne was supposed to be: a killer app.
Jonathan Fung [Gotakon]
Don,
US autos are not just in demand in China. They're in MASSIVE demand. They're like the freshest things. Like Jeff said, it's sort of like conspicuous consumption, and people there buy American cars as a sign that they can afford them over a Chery Amulet or Brilliance BS6. Plus, if I'm not mistaken, there's probably a pretty sizable tariff on them.
Yeah, when I was in China, I saw a TON of cars with a "Shanghai GM" badge on the back. And out of them, Buicks were the most popular and apparently the trendiest thing to get.
Little Something I Wrote Up About China's Car Scene
Don
Interesting, Jon. Let's hope demand keeps at its current pace.
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