An excellent example of this dynamic is General Motors’ leveraging of its Chinese partner Shanghai Automobile Industry Corporation across geographies to successfully compete in markets where it could not have done so alone. In China, like all foreign OEMs, GM is required to assemble and distribute product through partners. GM has taken this constraint and turned it to its advantage by leveraging the mutual strengths of not only its Chinese partner SAIC, but those of its Daewoo subsidiary as well. This has led to market-leading sales in China with 1.1 million unit sales in 2009 of a Wuling-branded minivan. By leveraging its partnership with Daewoo, GM has also been able to introduce lower-priced Chevrolet branded vehicles to China through its partnership with SAIC.
GM and SAIC are now poised to replicate their success in India and beyond. GM/SAIC/Wuling plan to introduce a Chevrolet-branded minivan in India based on the Wuling low-cost platform. Consideration is also being given to selling this product in Latin America and other emerging markets, also under the Chevrolet brand. This can be seen as the first step of leveraging this partnership, driven by the scale of the Chinese and Indian markets, as the foundation for a powerful emerging market strategy. This major strategic effort would not have been feasible by either of these partners independently.
LINK to the Introduction
Links to the previous themes:
THEME 1: Differentiated demand profiles across markets provide limited opportunity for leveraging a common product portfolio in both markets