The Start of Shanghai GM Generations of GM — Volkswagen Santana sedan II

4 Июн 2015 | Author: | Комментарии к записи The Start of Shanghai GM Generations of GM — Volkswagen Santana sedan II отключены
Volkswagen Santana sedan II

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I was there.

Author’s Although this is an I was there. I would invite any other GM who were part of the early of Shanghai GM to contribute their own and perspectives.

I came to China in 1994, during the first of what was called The Shanghai At the time, a few early GM China Rick Swando, Steve and Ron Gilchrist had been discussing the of a production joint venture Shanghai Automotive Industry (SAIC) since late The sum total of their efforts was a relations with SAIC top a rolodex of business cards and a presentation of basic JV assumptions.

SAIC is unusual in the Chinese industry in that it is a state enterprise of the Shanghai city Most of the other large auto companies are owned by central government.

GM was, at the competing with Ford and to get the agreement from SAIC to their second OEM partner in SAIC had an existing and highly JV with Volkswagen (Shanghai VW) the mid 1980s, but SAIC had concluded their partnership with VW was not a basis to grow their business in China, nor did it offer the opportunity to develop in line China’s Automotive Policy and for the Chinese Auto Industry. The government required the Chinese companies to develop their own RD / development capabilities, to achieve capacity of at least 100,000 per year, high levels of localization and to develop several basic infrastructure elements. It was that VW had indicated to SAIC Thank you very much, we the current structure of our joint with you, but are not interested in the next steps to develop an auto company in

China. Shanghai VW was producing localized, but outdated (by at least 2 generations) Santana sedans.

Toyota was in the hunt, but was slow and to fully realize SAIC’s of a Chinese auto company. were specifically unwilling to in the development of a local R D center and also reluctant to share latest product technology. effectively eliminated Toyota the competition for SAIC’s new JV.

Ford was a more credible threat, and was in the lead in the competition in the eyes of SAIC execs. Ford was all the requirements: a fully modern and minivan off the same architecture Windstar), local RD center JV, components development and the possibility of vehicles from China. was headquartered in Beijing and had cultivated with China central officials in the key automotive and foreign bureaucracies. Their relationships in were not as strong.


At the time, it was not clear who ultimately the decision about the new partner for The city of Shanghai owned and had a strong interest in finding the partner. Further, Shanghai government was very powerful in politics, as many of the top Chinese government officials, including the Jiang Zemin, came Shanghai or surrounding provinces. the central governments auto was determined by bureaucracies in Beijing. SAIC’s partner selection Beijing’s approval. Ford that gaining favor in would give them an by ensuring easy bureaucratic GM, which was weak in its relationships Beijing bureaucrats at the time, that Shanghai City would decide the partner and be able to get their selection in Beijing due to Shanghai’s political

(to be continued)

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