GM Debuts "Treasured Horse" Brand in China

You remember GM, don't you? The U.S. automaker that declared bankruptcy and killed off beloved brands like Pontiac and breakthrough brands like Saturn in America?

Well today GM is a very different company — and it seems to be pinning its hopes for growth in markets other than the United States.

GM, in a joint venture with Chinese partners SAIC and Wuling Motors, has announced the launch of a new Chinese car brand, Baojun (the Chinese word for "treasured horse"). We're sensing a trend here — GM's move also follows Hermès' announcement that it's launching a distinct brand, called Shang Xia, for China.

Kevin Wale, President and Managing Director of GM China Group, says, "The introduction of Baojun is 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. It will enable us to better address the increasingly segmented Chinese vehicle market.

Shen Yang, General Manager of the SAIC-GM-Wuling partnership, says, "Baojun is being positioned as a reliable partner when an image that is confident, smart and dependable. We aim to surpass customer expectations by creating a brand that combines world-class quality with low ownership costs."

The New York Times reports that the first vehicle wearing the Baojun nameplate is likely to be a midsize sedan. It will target consumers who live outside China's major metropolitan areas. The sedan will be priced lower than other midsize cars made by GM in China.

The three-way venture sold over 1 million vehicles in China last year, the first automobile manufacturer to do so. They hope to double that number in 2010.