GM’s China brand Baojun attempts a major makeover

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Han Dehong, senior sales manager at SGMW, said the venture had been exploring a makeover of the Baojun brand since 2014 in tandem with a wide-ranging overhaul of its r&d, supply chain and distribution system.

“Younger groups have become the main force of consumer spending in our society and we need to respond to this new younger wave with brand upgrades and revamped models,” he said.

New showrooms

Compared to 10 years ago when there few models in the mid-market price range, competition has become fierce. Popular models include Toyota Motor Corp.’s Corolla and Volkswagen’s Lavida. VW’s newly launched Jetta brand, which like Baojun is a China-only brand, is expected to also be sold in the same range.

“Baojun will need a competitive edge,” said Yale Zhang, head of Shanghai-based consultancy Automotive Foresight, noting that Volkswagen is known for quality, Geely Autombile Holdings is known for design while Great Wall Motor vehicles offer roomy interiors.

To set itself apart, the revamped Baojun brand will emphasize self-driving technology and internet connectivity, GM officials said.

The new models will be sold in 365 new or refurbished showrooms, equivalent to 60 percent of Baojun stores across China. The brand will also strengthen its presence in bigger cities like Chengdu, Tianjin and Nanjin.

A new mobile phone app was also recently launched, allowing customers to arrange a test drive and buy the new models online.

GM officials declined to say how much the automaker had invested in the new models, the logo redesign and new stores.

Moving upmarket

The move upmarket for Baojun is partial as some cheaper models will still carry the old Baojun badge although others will be folded into the Wuling brand — the other marque sold by SGMW, said Matt Tsien, GM’s chief in China.

Tsien said GM had little concern that a more upmarket Baojun might eat into sales of GM’s Chevrolet as Chinese customers interested in buying a Chevy tend not to be attracted to domestic brands.

Roughly equivalent vehicles would also be priced differently. Whereas the most expensive version of the RS-5 will cost 132,800 yuan, the Chevy Equinox crossover will start from 174,900 yuan.

“No matter how far you take Baojun, Baojun is still going to be domestic, it’s going to focus on the local market here and it’s going to still represent very good value for customers,” said Tsien. 

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