Terminal sales resume growth, SAIC-GM's revival begins with Buick's recovery

11/19 2024 431

Introduction | Lead

On November 14, on the eve of the Guangzhou Auto Show, SAIC-GM Buick held a Buick brand family dinner event attended by nearly 500 people at the Shangri-La Hotel in Guangzhou. Many media professionals lamented that they had not participated in such a large-scale gathering for many years, and many old friends who had not seen each other for years reunited at the dinner. The dinner allowed everyone to feel the warmth of Buick's brand recovery. Behind this is the increasingly apparent stabilization of SAIC-GM's terminal sales, and the long-absent confidence is gradually returning.

Produced by | Heyan Yueche Studio

Written by | Zhang Chi

Edited by | Heyan Studio

Full text: 2432 words

Reading time: 4 minutes

With the support of the "one-price" policy and superior product capabilities, Buick brand sales have recently experienced a comprehensive recovery. Among them, Buick Envision Plus sold 8,154 units in October, a year-on-year increase of 52% and a month-on-month increase of 151%; Buick ELECTRA E5 sold 3,952 units in October, a year-on-year increase of 376% and a month-on-month increase of 28%.

It is worth mentioning that the 2025 Platinum Edition of the Buick LaCrosse exceeded 5,000 orders within five days of its launch. For SAIC-GM at its peak, such achievements may not mean much, but in the current domestic auto market, where competition is fierce, achieving such results is very difficult. For SAIC-GM, only by stabilizing the Buick brand first can it then steadily drive the recovery of Cadillac and Chevrolet, thereby enabling the entire SAIC-GM to return to the right track.

△With the support of the "one-price" policy and superior product capabilities, Buick brand sales have recently experienced a comprehensive recovery

Nothing is more appealing than a "one-price" Buick LaCrosse

For SAIC-GM, the successful launch of the 2025 Platinum Edition of the Buick LaCrosse is undoubtedly more exciting than the success of models like the Envision Plus and GL8. Mainstream models of the same level in the market are not as appealing as the LaCrosse priced at 159,900 yuan.

△Mainstream models of the same level in the market are not as appealing as the LaCrosse priced at 159,900 yuan

As Buick's current flagship sedan in the domestic market, the 2025 Platinum Edition of the Buick LaCrosse not only boasts an elegant design but also offers spacious interior space, leading the same-level models in terms of driving and riding comfort. In addition, GM's most advanced technologies in powertrains and safety have been applied to this model. In terms of product capabilities, the Buick LaCrosse basically has no shortcomings.

In the powertrain sector, the "Double Ten Best" award-winning power system, composed of the 8th-generation Ecotec 2.0T variable cylinder turbocharged engine and the 9-speed HYDRA-MATIC intelligent transmission, provides the LaCrosse with the fastest acceleration time in its class of 7.2 seconds from 0 to 100 km/h. Moreover, besides its strong power, this powertrain system is very stable and reliable. Compared to electric vehicles, the Buick LaCrosse has no range anxiety, allowing for spontaneous travel at any time.

△The Buick LaCrosse uses GM's most advanced powertrain technology

In the field of intelligent driving, thanks to the support of eCruise, the Buick LaCrosse is no less impressive than models of the same level in the market. The 14 intelligent driving assistance functions, including full-speed range adaptive cruise control, intelligent lane centering assistance, and APA automatic parking assistance, cover daily driving scenarios. Whether on highways, during morning and evening rush hours in urban areas, or when parking in narrow spaces, eCruise can excel in various situations.

△In the field of intelligent driving, thanks to the support of eCruise, the Buick LaCrosse is no less impressive than models of the same level in the market

Pan Asia gives SAIC-GM the confidence to turn things around

In the Chinese auto market, Buick's brand appeal is still present, and SAIC-GM's overall system capabilities are still intact.

Domestic consumers still trust Buick's quality and craftsmanship. Therefore, when SAIC-GM introduced the "one-price" policy, its overall terminal sales quickly surged. SAIC-GM used the "one-price" policy to boost terminal sales, stabilizing the confidence of the entire company, related component suppliers, and dealers, giving everyone hope for the company's future. However, price reductions will inevitably affect corporate profits and are not a long-term solution. To achieve a comprehensive turnaround in the domestic market, SAIC-GM has an ace up its sleeve: Pan Asia Technical Automotive Center.

△Pan Asia is an ace up SAIC-GM's sleeve

Compared to the technical centers of most domestic joint venture automakers, Pan Asia is one of the few that can truly integrate into GM's global R&D system, build global platforms for GM, and possess vehicle-level platform development capabilities. Therefore, compared to other joint venture automakers, SAIC-GM does not need to rely entirely on input from overseas engineering centers and can stand on its own feet. When capturing fleeting market opportunities, Pan Asia steps forward to develop products that meet market requirements for SAIC-GM.

Currently, SAIC-GM's entire digital product development process can be completed 100% by its local Chinese team. In July this year, SAIC-GM also launched its NOP Smart Pilot Assisted Driving System, the first pilot assisted system introduced by a joint venture enterprise. While many joint venture automakers are still waiting for overseas technical centers to achieve OTA software upgrades, SAIC-GM has also achieved the largest-scale OTA covering 300,000 vehicles among joint venture automakers. In addition, by next year, SAIC-GM will achieve a comprehensive rollout of new energy products, ranging from plug-in hybrids to extended-range electric vehicles to pure electric vehicles.

△SAIC-GM launched the NOP Smart Pilot Assisted Driving System

The Chinese market is indispensable

In the past two years, the rise of domestic independent brands and new forces has had a significant impact on traditional joint venture automakers, and this impact is particularly evident in the domestic market. Whether it is multinational automakers like Toyota, Volkswagen, and GM or luxury brands like Mercedes-Benz, BMW, and Audi, they have all felt tremendous pressure from independent automakers. However, for GM, exiting the Chinese market has never been an option. Compared to India, Brazil, Australia, and Europe, China has obvious advantages in both size and purchasing power. Therefore, it is a crucial part of GM's sustainable development to maintain operations and achieve success in the two largest auto markets globally: China and the United States.

△In GM's global layout, the Chinese market is indispensable

However, facing the impact of local competitors, joint venture automakers cannot rely on traditional thinking modes to break the deadlock. SAIC-GM has set a good example of how to do this, which can even be called a template for the Joint Venture 2.0 era.

On the one hand, in terms of pricing current models, joint venture automakers need to abandon their previously arrogant attitudes. Independent brands have gained a certain first-mover advantage in the fields of new energy vehicles and intelligent connectivity. As latecomers, joint venture automakers need to show more sincerity in pricing to open up the market and gain a foothold when their product capabilities are not superior.

△Joint venture automakers need to show more sincerity in pricing to open up the market and gain a foothold

On the other hand, joint venture automakers cannot rely solely on technology imports from overseas technical centers anymore. Especially in areas such as plug-in hybrid technology with long pure electric range, intelligent cockpits, and intelligent driving, the local technical centers of joint venture automakers need to shoulder the burden of research and development. We are not doubting the R&D capabilities of these established multinational automakers; given time, they can catch up. However, domestic automakers have never slowed down their pace in the fields of new energy vehicles and intelligent connectivity. If the technical centers of joint venture automakers fail to make a difference at this time, they may be marginalized by the market before competitive models are launched.

△Joint venture automakers need to possess strong local technical R&D capabilities

Commentary

In the first half of the year, when SAIC-GM was in a difficult situation, SAIC Group proactively chose to change its leadership. Lu Xiao, from Pan Asia, took charge of SAIC-GM, and Xue Haitao, the young executive who created the sales miracle of the Wuling Hongguang MINI, was responsible for marketing. Looking at all enterprises under SAIC Group, this combination is already the strongest. The "one-price" policy has helped SAIC-GM curb its downward trend. The next step is to see if the new vehicles launched by SAIC-GM/Pan Asia can return to their previous heights.

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