GM looks to China as global EV hub

GENERAL Motors has started building an advanced technical centre in Shanghai which will become a global design and engineering hub for electric vehicles and a range of other green technology, including alternative powertrains, lightweight components and new manufacturing processes.

Marching towards two million-plus sales in China this year with its joint-venture partners, GM also this week announced the creation of a new budget Chinese domestic brand – Baojun – developed in conjunction with SAIC and Wuling Motors.

A Chinese word for “treasured horse”, Baojun will be positioned below Chevrolet and Buick as low-cost but reliable brand, with its model range – the first of which is understood to be a medium-sized sedan using a previous-generation platform and technology – targeting buyers outside major metropolitan areas.

In contrast, the new advanced technical centre due to open late next year is being billed as one of GM’s most important facilities worldwide with its role in leading global research and development for the US auto giant in areas such as electric and alternative energy vehicles, battery technology, non-petroleum-based fuels, new powertrain materials and lightweight materials in general.

It will also house an advanced design centre that will support GM’s global design resources.

While Holden’s Melbourne-based design centre is involved in a range of programs that have surfaced in China, including the recent Volt-based MPV5 and futuristic EN-V concepts, the Chinese centre will, in turn, play a significant role in creating green cars and technology that could be seen in Australia.

From top: Baojun logo, GM EN-V, Chevrolet Volt MPV5 concept.

These go beyond the current main attractions, including the 2012 ‘Holden Volt’ plug-in hybrid. A Cruze with Volt underpinnings is also in development, and GM is poised to launch a full-electric version of its all-new Spark micro-car, dubbed the e-Spark, in select overseas markets.

The conventional version of the Spark has just received Australian design rule certification ahead of its launch as the Holden Barina Spark later this year.

GM China Group president and managing director, Kevin Wale, who is a former director of GM Holden, said the Shanghai technical centre was “integral element” of the company’s global product development strategy, creating advanced technologies and leading GM's global research in targeted areas.

Mr Wale said that within five years the centre will house more than 300 employees, including designers, researchers, engineers and technicians.

It will include 62 test labs and nine research labs, including key R&D labs in vehicle engineering, advanced powertrain engineering, science and design.

“We expect it to become one of GM’s most important and comprehensive technical and design facilities worldwide,” Mr Wale said.

“As a global technology leader and the global industry leader in China, GM is committed to working with the Chinese government, industry partners and the academic community in the development of tomorrow’s vehicles.

“By joining forces, we can accelerate the arrival of sustainable transportation and remove the motor vehicle from the environmental equation.”

Meanwhile, Mr Wale described the introduction of the Baojun brand as a key part of GM’s multi-brand strategy in China.

“Baojun will complement our other brands sold in China including our fastest-growing mainstream nameplate, Chevrolet,” he said. “It will enable us to better address the increasingly segmented Chinese vehicle market.”

Underscoring the strategic importance of China for the world’s biggest car manufacturers, Ford also this week broke ground with its partner Jiangling Motors Corp (JMC) for a new $US300m ($A342m) assembly plant in Nanchang, Jiangxi Province, which will produce up to 300,000 Ford- and JMC-branded vehicles a year when it opens late in 2012.

Ford holds a 30 per cent stake in JMC, which produces the Ford Transit van for sale in China.

Ford Motor China chairman and CEO Robert Graziano described the new plant as “another milestone in Ford Motor Company’s strategy to expand our production and vehicle portfolio here in the largest automotive market in the world”.

He also said that it would help Ford and JMC keep up with both domestic and export demand, expanding on its current capacity of 210,000 vehicles a year combined from its two existing plants.

"Our recent investments to expand JMC in Nanchang and Changan Ford Mazda Automobile in Chongqing are part of our long-term commitment to bring high-quality, fuel-efficient and fun-to-drive vehicles to China from our global portfolio,” Mr Graziano said.

“Growing our business in China helps contributes to the ‘One Ford’ plan by continuing to deliver strong products and profitable growth for all.”