GM’s Vision for 2020
Ammann and Tsien also discussed some of the trends shaping China’s auto industry in the next few years, including: ◾Luxury vehicles are expected to make up at least 10 percent of auto sales by 2020, and GM will add one new Cadillac per year through 2016 ◾The SUV market will reach 7 million by 2020, or triple what it is today. GM will add 11 new SUVs between now and 2018 ◾MPV sales will likely double to 3 million by 2020, from about 1.4 million last year. GM has demonstrated success in this area, with the Buick GL8 and Wuling Hongguang series and more entries to come from its other brands ◾In 2020 compact sedans will still be the most popular segment, with about 10M annual sales. GM offers the Buick Excelle family, Chevrolet Cruze and Baojun 630 and has more new models in the segment under development ◾Within six years, replacement or repeat purchases in China could exceed two-thirds of industry demand, compared to one-third today. This trend is expected to drive demand for more diverse offerings
One means for GM and its joint ventures to achieve their ambitious growth plans is by creating new vehicle technologies locally. The Research and Development team at GM’s Advanced Technical Centers in Shanghai recently developed the world’s first casting machine for lightweight magnesium parts, which are 30 percent lighter than aluminum parts and can improve a vehicle’s fuel economy by as much as 7 percent for every 150-kilogram reduction in weight.
GM will also continue to strengthen its focus on innovation through its Pan Asia Technical Center (PATAC) joint venture, which will open a new facility in Shanghai next year, and the GM China Advanced Technical Center in Shanghai.
Helping make the local community greener, safer and healthier is another key focus, Tsien explained. GM will maintain its support of corporate social responsibility initiatives across China such as the three-year GM Restoring Nature’s Habitat Project, which is helping protect key wetlands in eastern China. GM is also supporting the Chevrolet Red Chalk Program to educate children in rural areas.
The company’s Safe Road Project, which is educating drivers and other road users on proper road safety, will be expanded in June with the launch of a new project to help increase children’s safety in and around cars.
“China is an incredibly dynamic market that’s changing rapidly, and we are moving full speed ahead to keep up with it,” said Tsien. “One thing that will not change between now and 2020 is our dedication to China and to living up to our vision to design, build and sell the world’s best vehicles. ”