GM signs deal to export $800M in Buicks to China

David Shepardson | Detroit News Washington Bureau | Link to Original Article @ DetNews

WASHINGTON -- General Motors Corp. signed an agreement today to export more than $800 million in U.S.-built vehicles to China.

GM and its Shanghai General Motors joint venture announced the multi-year agreement in the nation's capital today. It lets GM export Buick Enclave crossover SUVs to China beginning next year, as well as auto parts and other vehicles.

The Enclave is built at GM's Lansing Delta Township assembly plant.

"Shanghai GM has become a leader in the production and sale of passenger cars in China, driven largely by the success of the Buick brand," Shanghai GM President Ding Lei said. "These new Buick premium sport utility vehicles will strengthen our lineup and enable us to continue to meet the changing needs of our growing base of customers,"

GM said the agreement will last three to four years and will lead to the export of about 5,000 vehicles annually.

The deal was signed at GM's Washington office at a meeting attended by China's Assistant Vice Minister of Commerce Chen Jian, Chinese Embassy officials, U.S. Assistant Secretary of Commerce Israel Hernandez and John Middlebrook, GM's vice president of Global Sales, Service and Marketing Operations and Shanghai GM Executive Vice President Robert Socia.

Buick has a long history in China; the vehicles were first sold in Shanghai in 1912.

As GM noted in a company blog on Buick's history: "To respond to growing demand for its products, Buick opened a sales office in Shanghai in 1929, and a 1930 Buick advertisement claimed that 'one out of every six cars (in China) is a Buick,' and that 'Buick owners are mostly the leading men in China,'" wrote Steven Shannon, Buick's general manger.

The last emperor of China, Pu Yi, owned at least one Buick in the 1920s.

Buick is the best-selling brand in China, and GM the best-selling automaker. In 2006, sales of vehicles by GM and its joint ventures rose 31.8 percent on an annual basis to a record 876,747 units. GM said this year it would surpass the 1 million vehicles sold mark in China.

In May, GM signed a deal to export $700 million worth of Cadillacs and automotive components to China, the fastest growing auto market in the world.

GM's China operations have already imported about $3.5 billion worth of vehicles, components, equipment, and machinery from North America over the past 10 years.

"We appreciate the support that we received from the Chinese and U.S. governments for this program, which will benefit both countries. It will take the value of GM sourcing contracts from the United States for the China market to more than $1.5 billion this year," said GM China Group President and Managing Director Kevin Wale said.

Jian praised the deal.

"The Chinese government will continue to work with the U.S. government and enterprises to create a better market environment, ensure a smooth channel for U.S. companies' business development and actively promote American exports to China for more balanced trade," Jian said.

Enclave will be imported by Shanghai GM and sold through its network of nearly 400 Buick dealerships across China.

GM sells several Buick models only in China.

nice! Good to see a few products going from here to there instead of the other way around.

If there's still a plant in a few weeks.

Finally... a reason to send back all those shipping containers we're collecting

Finally... a reason to send back all those shipping containers we're collecting

hahaha, exactly

Now, if we can just build them!

Wanna send us the Park Ave? That is fair right?

If there's still a plant in a few weeks.

Hopefully there will be.

Here's my :twocents::

This is actually significant news IMHO: it shows that GM can leverage global resources and still offer US-built models elsewhere. I think the UAW should be looking at this more than at the VEBA issue, because it shows that it can be done and that GM is not on some conspiracy-theory-delirium to remove all its plants from US soil.

Wanna send us the Park Ave? That is fair right?

yea, thats what i was going to say...

it must be so easy for GM to say, hey you guys want our NA product... here you go!

but when NA asks for global product... they are like bob lutz will get back to you on that...

yea, thats what i was going to say...

it must be so easy for GM to say, hey you guys want our NA product... here you go!

but when NA asks for global product... they are like bob lutz will get back to you on that...

+ 3. I think the trade is fair. I don't care if the dealer wants it or not.