In a recent report by reporter Wang Yunqing, the discussion centered on the development of independent brands within China's automotive industry. Two dominant models have emerged in this space. The first is exemplified by Geely and Chery, which developed their brands through imitation and gradual innovation. The second model is represented by Brilliance Zhonghua, where foreign companies handle design and development, but the intellectual property remains entirely with the Chinese company.
However, SAIC-GM-Wuling has taken a different path by building its own brand within a joint venture structure. In an exclusive interview, 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 whether Wuling had become just a sub-brand, Shenyang firmly denied it, stating that Wuling remains a brand owned by Liuzhou Wuling.
He explained that while the brand is local and R&D is conducted domestically, General Motors (GM) contributes technology and capital. More importantly, GM has helped position Wuling as an international player. 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 and others among the top three capturing over 75% of the segment.
In the first half of the year, Wuling sold 115,000 units, with projections to exceed 220,000 for the full year. By 2008, the company aims to reach 400,000 units in sales. Shenyang outlined three developmental stages for Wuling: first, transforming from an old enterprise into a modern one; second, becoming an international company; and third, achieving global competitiveness. Currently, Wuling is in the second phase, working to establish itself as a truly international automaker.
According to Shenyang, an international enterprise must meet certain criteria, such as exporting at least 15% of its production by 2010. He emphasized the importance of building internal strength when pursuing independent brands. Even if GM were to withdraw, Wuling would remain a strong and viable company. In contrast, many companies claim to focus on independent brands but lack real competitiveness due to weak systemic capabilities.
Shenyang expressed pride in Wuling’s success in this area, noting that its low-cost strategies could serve as valuable lessons for GM. Looking ahead, he mentioned that Wuling will continue to expand in the micro-vehicle market. He pointed out that the trend toward compact vehicles is growing, and the Chevrolet SPARK represents Wuling’s first step in this direction.
When asked if all Wuling mini-vehicles would carry the Chevrolet brand, Shenyang clarified that it's not necessarily about selling better, but rather about maintaining the identity and strength of the Wuling brand. This approach reflects a careful balance between collaboration and brand independence, setting Wuling apart in the competitive Chinese auto industry.
Keywords: independent brands, future direction, automotive industry, joint ventures, Wuling, GM, brand development.
Suzhou Johnson Automation Technology Co., Ltd. , https://www.cn-johnson.com