In a recent report by reporter Wang Yunqing, the topic of independent brands in China's automotive industry was explored. The development of these brands has taken two main paths in China. One is represented by Geely and Chery, which have built their own brands through imitation and gradual innovation. The other model, exemplified by Brilliance Zhonghua, involves completely outsourcing design and development to foreign companies while maintaining full ownership of the brand. However, SAIC-GM-Wuling has taken a different approach by creating its own brand within a joint venture.
During an exclusive interview with this reporter, Shenyang General Motors Wuling General Manager Shenyang emphasized that "Wuling" is now the only fully autonomous brand operating under a joint venture model in China. When asked if Wuling had become just a sub-brand, Shenyang firmly denied it, stating that Wuling remains a brand owned by Liuzhou Wuling. While the brand is local and R&D is also done locally, GM contributes technology and capital. More importantly, GM helped transform Wuling into an international company.
Since the joint venture, Wuling's growth has accelerated significantly. According to Shenyang, the top five micro-vehicle producers in China account for 99% of the market, with Wuling among the top three, capturing over 75% of the market share. In the first half of this year alone, Wuling sold 115,000 units, with expectations to exceed 220,000 for the year. By 2008, the sales target is set at 400,000 units.
Shenyang outlined three key steps in Wuling’s development: first, transforming from an old enterprise into a modern one; second, evolving into an international company; and third, becoming globally competitive. Currently, Wuling is in the second phase, aiming to become a truly global automaker.
To be considered an international company, Shenyang believes Wuling must achieve a 15% export rate of total production by 2010. He emphasized the importance of building internal strength when developing independent brands. Even if GM were to withdraw, Wuling would remain a strong and sustainable company. Many other companies claim to pursue independent brands but lack real competitiveness, as their products fail to sustain long-term success due to weak internal systems.
Wuling, on the other hand, has successfully developed a systemic competitive advantage. The company’s low-cost strategies are even being studied by GM. Looking ahead, Shenyang said Wuling will continue expanding its micro-passenger vehicle market. He mentioned that the trend in micro-vehicles is fast-paced, and the Chevrolet SPARK is Wuling’s first step in this direction.
Naturally, there's curiosity about whether all Wuling mini-vehicles will carry the Chevrolet logo. Shenyang clarified that it’s not necessary for them to do so, as the Wuling brand itself is strong and recognized. He pointed out that the Wuling brand may perform better than the Chevrolet one in certain markets.
Topics: Independent Brands, Where to Go?
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