Global Motors Rolls Out New Cheap Car — in China
The China division of Global Motors (formerly known as Government Motors, formerly known as General Motors) debuted its Baojun 630 compact sedan today at the Shanghai auto show.
As USA Today reports, the car has one truly appealing quality: It’s cheap.
It’s not like the U.S. needs “affordable personal transportation” or anything.
But. Hold on. There’s more to this car than meets the eye. Here’s the official U.S. version of the story:
- GM says it was developed in China as the first in an expected line of vehicles. For the moment, it isn’t saying the price of the car. But it should be eyepopping, at least by U.S. standards.
The Baojun 630 is powered by a 1.5-liter engine. Apparently it doesn’t have air bags, but it does have a “complete safety design,” with the extensive use of high-strength steel and the adoption of anti-lock brakes with electronic brakeforce distribution, three-point seat belts with early warning restraints, reverse drive radar, child safety seat fasteners and safety locks.
Chinese car news sites reported last November, when the first 2011 model of the Baojun 630 — based on the Buick Excelle — rolled off the line in Liuzhou, Guangxi Zhuang Autonomous Region, that the sedan is expected to cost $7,000.
But. There’s a lot more to learn about the Baojun 630.
An assessment from ChinaCarTimes.com was much more candid than the U.S. report and delivered a less-than-glowing, cautious endorsement:
- The interior is certainly from GM’s parts bin, but the exterior is very similar to SAIC’s Roewe 350 and has some Roewe 550 looks in there also, the whole car looks exceptionally well for a vehicle that is going to be around 50,000rmb to 70,000rmb when fully launched. … The BaoJun is a marvel of modern globalization with it taking bits and pieces from the USA, UK, China and Korea. The platform was designed in Korea, whilst the body design was done in China with GM’s help, the brand was developed in China and also the engine was developed by SAIC in the UK technical center. It seems a car brand is no longer restrained by its national boundaries, and the BaoJun 630 is out to prove that. Another interesting boundary that this BaoJun is pushing is the overlap into the pricing segment that was traditionally controlled by the Chinese self developed brands, how this will play out is anyone’s guess at this stage!
Another website, AutoRevolution.com, adds that the Baojun 630 is “Far from being frugal when it comes to fuel consumption, judging by today’s standards, the engine needs however a comfortable amount of fuel to cover 100 km: 6.9 liters.” This is approximately 14 km (8.7 miles) per liter.
Even the nameplate of GM China’s joint venture, SAIC-GM-Wuling (SGMW), launched in 2002 to manufacture a range of Wuling brand mini-trucks and minivans and the Chevrolet Le Chi, is globalized.
How “globalized” is the Baojun 630? Very.
Yet another website, TheAutoChannel.com, writes today’s premiere at the “global motor show” reveals a Baojun 630 that “infuses global design elements” and “offers global quality” “leveraged [through] GM’s global expertise in engineering, manufacturing and many other areas.”
Still want one — even if it’s cheap?
But if price alone is not enough to bring a smile to your face, it surely must be doing so in China.
Last November, as the sales promotion was heating up, Baojun 630 manufacturer SGMW launched a “nationwide ‘happiness’ campaign on the Internet. … encouraging people to submit stories about how they pursued happiness in their lives.”
“Hope” and “Change” campaigns cannot be far behind.
Update: GM’s fourth chief in less than two years, Dan Akerson, “likes to talk about China as GM’s ‘crown jewel.’”
Mark Modica reacts in the New York Post: “Huh? The Chinese market is far less profitable than North America. Anyway, GM lost ground on both market share and profitability in China in the fourth quarter. (China first-quarter sales figures will be issued when GM reports earnings next month.)”
Looks like the SGMW Baojun 630 may need lots of that Hopechangeyness after all.
Posted on April 18, 2011, in Barack Obama and tagged Baojun 630, China, General Motors, politics, RBO. Bookmark the permalink. 10 Comments.
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One must ponder the quality of such a vehicle, if the company must have a nationwide happiness campaign.
Thanks GM, why don’t you just give the cars away. $7000? If the UAW build this car I bet it would cost $14000 or more.
Read closely. This is a patch-worked vehicle. Plus, if it was built by an American union, it would most likely cost nothing short of $20,000.
Communists thrive on quantity over quality – what self respecting motorists would drive this mut?
Brenda it doesn’t matter what you call it, its another GM/China con job. The Koreans do this also. If you want them to buy American, you have to build a plant there and use Chinese or Korean labor. I have first hand experience with this. If these cars were build in the states, China would not buy them. Another question, will GM be able to find the tax loop holes that GE found, by doing business in Asia, if they do it right, and you know they will, GM won’t pay and federal corporate taxes. It may be legal but its not right. We need to change the tax code for companies. Because they have the money and they can hire the best tax lawyers, and CPA’s in the world does not make it right. All that money that should have and could have went for taxes, will find its way back to the politicians who helped GE and GM in the first place. And also, some of that money will pay their executives bonuses, when it could have helped our country in the form of some taxes
If it says…..made in china, I put it back.
Wouldn’t it be a hoot if we were to find out that the American taxpayer is subsidizing this car?
““Far from being frugal when it comes to fuel consumption, judging by today’s standards, the engine needs however a comfortable amount of fuel to cover 100 km: 6.9 liters.” This is approximately 14 km (8.7 miles) per liter.”
By my calculations, the vehicle gets 34.4mpg… while not great, it isn’t horrible. Depending on vehicle weight, I would expect better out of a 1.5L engine if well engineered.
This vehicle, from published reports, appears to be lacking several safety features that American consumers want (and/or the government requires):
1. Tire pressure monitoring system
2. 6+ airbags on most vehicles
3. Electronic stability program
4. Traction control
Upon quick review of the articles, I don’t recall whether or not it is equipped with air conditioning or much in the way of audio options.
Considering the limited lineup of vehicles available in China, I would expect that this vehicle will sell. I mean, if there are Chinese that can afford to buy a grey market Mercedes-Benz that costs twice what it cost here in the U.S., there surely must be some that can afford a $7K vehicle.
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