Can SAIC General Technical Cooperation Promote the Upgrade of Joint Venture Mode?

In August, SAIC and GM held a signing ceremony for technical cooperation at the Peace Hotel on the banks of the Huangpu River. Although the details of the cooperation were not announced, the cooperation between the two parties still received extensive attention.

First of all, among the companies in the cooperation, GM, as the top three of the old American auto companies, with the help of the government, has succeeded in resisting the impact of the financial crisis and is gradually radiating new vitality. SAIC, as China The largest automaker in the world has become one of the world’s largest auto markets. SAIC’s strength is also increasing. The two companies on this scale have not confined their eyes to the Chinese market, and the common results of both parties will be applied globally. As a Chinese company, it has entered the research and development and application of advanced powertrains for the first time.

Second, the cooperation between the two parties will jointly develop a 1.0-liter engine and a dry dual-clutch transmission with a displacement of 1.5 liters. As the core powertrain, the cooperation between the two sides once again stirs the nerves of the people.

The Chinese market has been implementing the concept of "market-for-technology" since 1987. However, due to the constraints of various factors, the core technologies of Chinese enterprises are still missing after the market is handed over. At the same time, with the continuous development of foreign technologies, The gap between the upgrade and the core technology is growing. This is also the reason that the joint venture brand has been criticized for many years. The joint development of the Chinese and foreign parties is breaking this old model.

General Motors entered the Chinese market in 1997 and established Shanghai GM with SAIC. Shanghai GM has maintained a high growth rate in China due to the accurate positioning of its brands and products and proper marketing. The reasons for forcing the cooperation between the two parties, in addition to SAIC and GM's good communication mechanism, the high R&D expenses of the advanced powertrain and the importance of the Chinese auto market have become the main factors for this time.

According to the agreement, the successful research of the two parties on the advanced powertrain is jointly owned by both parties. In addition to General Motors will be equipped with this series of powertrains, SAIC Roewe and MG will also share this technology. In the future, the background of the promotion of skills and environmental protection and the enthusiasm of consumers for advanced power technology, the powertrain jointly developed by SAIC and GM will undoubtedly gain advantages in cost.

The in-depth cooperation between SAIC and GM has enabled SAIC to upgrade from the role of a simple foundry to a participant. Apart from the cost reduction, this cooperation will undoubtedly benefit its own brand. The existing joint venture model may play an upgrade role, thereby triggering the "catfish effect."

With China becoming the world's largest auto market, how Chinese auto companies will grow from strong to strong, in addition to the Chinese side should reflect on, the foreign side should also advance with the times, even if adjusting the role of positioning to achieve a win-win situation.