Zhang Yi: Why Shanghai GM took the lead in breaking through millions of sales

Shanghai General Motors Co., Ltd. announced on the 15th that Shanghai General Motors' production and sales volume exceeded one million in 2010, and it has exceeded the one million mark in the domestic mainstream passenger car companies. It is predicted that Shanghai Volkswagen's automobile production and sales this year are also expected to exceed the million mark.

Since September of this year, Shanghai GM has sold more than 100,000 units in a single month for three consecutive months. By the end of November, Shanghai GM's sales have reached 949,000 units. As early as mid-November, Shanghai GM began to prepare for the breakthrough of one million vehicles.

The annual production and sales of 1 million vehicles is a historic breakthrough for Shanghai GM. This shows that Shanghai GM has completely overcome the adverse effects of the general bankruptcy reorganization and re-enter the rapid development channel. From sales of 20,000 units in 1999 to sales of more than one million units in 2010, Shanghai GM not only created a new industry record, but also became the fastest growing passenger car leader in China during the 12 years.

In 2010, the three major brands of Shanghai General Motors achieved a rapid development that surpassed the average level of the industry with an overall increase in brand strength, product strength, and service. As of December 15, the Buick brand sold nearly 540,000 vehicles, an increase of 28% year-on-year; the Chevrolet brand exceeded 450,000 vehicles, an increase of 80% year-on-year; and the Cadillac brand sold 16,000 vehicles, an increase of 154% year-on-year.

Some analysts believe that in 2010 Shanghai GM was able to break the one-million mark at one stroke, leading the domestic mainstream passenger car companies, mainly for the following four reasons:

First, the domestic auto market continues to improve, and consumers’ willingness to purchase cars is unprecedentedly high. It is estimated that the production and sales of domestically-produced automobiles nationwide will exceed 18 million, an increase of about 32% over the previous year. It ranks first in the world's largest automobile production country and the first new car consumer market.

The second is to benefit from the country’s policy of encouraging automobile consumption, especially the energy-saving vehicle subsidy policy, which has promoted the sales of small-displacement vehicles. Shanghai GM has more than a dozen models to be included in the National Energy-Efficient Vehicle Subsidy Vehicle Catalog, and each vehicle can enjoy a subsidy of 3,000 yuan.

Third, Shanghai GM has invested nearly 1.1 billion U.S. dollars in its powertrain since the implementation of the “Green Dynamics of the Future” strategy in 2008. It has introduced and locally produced more than ten advanced engines and launched models equipped with new powertrains. 25 In terms of money, fuel consumption and carbon emissions are significantly lower than those of the old generation. New products such as Buick LaCrosse, Regal, Hideo, Chevrolet Cruze, and New Sail have become the hottest models on the market. Large-scale application of environmental protection power technologies such as turbocharger, direct injection in cylinder, high-efficiency small-displacement, and six-speed transmission, has won the green label of "better performance, lower fuel consumption and less emissions" for the product. With the "oil tiger" hat, the products are more competitive in the market.

Fourth, Shanghai GM's after-sales service has improved significantly. While the scale of sales continues to expand, Shanghai General Motors continues to improve and innovate in its service system. From the first car service brand "Buick Care" to create the era of domestic automotive service brand, to "know the car understand you more" Chevrolet service brand.

In the double appraisal of “JD Power China Auto Brand Satisfaction Survey” and “2010 China Auto Service After-sales Service Satisfaction Index” both domestic and foreign organizations, Shanghai GM won the double championship.