• Sep 24, 2007
click above image to view high-res gallery of the Buick Enclave

Amidst all the fury surrounding the UAW strike today, General Motors released a statement announcing an $800 million deal with its Chinese joint-venture company to supply the Chinese market with U.S.-built vehicles and components. It's the second such agreement GM has signed, the first being an agreement worth $700 million to supply Cadillacs and components to China signed back in May. The new agreement focuses mainly on the Buick Enclave CUV, which is built at GM's Lansing Delta Township assembly plant. One can't help but question the timing of this announcement as GM and UAW negotiators are back at the table this afternoon to discuss job security for the union's 73,000 members. There's little doubt now that UAW employees at the Lansing plant will be busy in the months ahead not only trying to meet demand for the Enclave in the U.S., but also producing the vehicle for export to China. We'll see as the day goes on if this agreement has any effect on negotiations, but there are a total of 59 plants operated by GM that use UAW workers. Securing work for just one of them probably isn't going to be enough.

[Source: GM]



PRESS RELEASE:

GM Signs Agreement For More Than $800 Million To Export U.S.-Built Vehicles And Components To China

WASHINGTON, D.C. (Sept. 24, 2007) - General Motors Corp. and its Shanghai General Motors joint venture today signed a multi-year agreement worth more than $800 million to export U.S.-built Buick Enclave premium crossover sport utility vehicles along with other vehicles and components to China beginning in 2008.
The agreement was signed in the presence of China's Assistant Vice Minister of Commerce Chen Jian, Chinese Embassy officials, U.S. Assistant Secretary of Commerce Israel Hernandez, GM Vice President of Global Sales, Service and Marketing Operations John Middlebrook, and Shanghai GM Executive Vice President Robert Socia.

The all-new Buick Enclave is built at GM's Lansing Delta Township assembly plant in Lansing, Michigan. Enclave is one of GM's most sought-after vehicles in North America because of its stylish, modern design and high level of standard features. Introduced earlier this year, the Enclave has received enthusiastic reviews and has helped lead General Motors' recent sales increase in its home market.

According to Shanghai GM President Ding Lei, "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. 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."

The Buick agreement is the second of two China export agreements signed by GM this year. In May, GM signed a deal to export $700 million worth of Cadillacs and automotive components to China from the United States. 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.

GM China Group President and Managing Director Kevin Wale said, "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."

Assistant Vice Minister of Commerce Chen Jian added, "The efforts of General Motors and its Chinese partner, Shanghai Automotive Industry Corp. Group (SAIC), to promote healthy and stable Sino-U.S. trade relations is very much appreciated. 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."

Enclave will be imported by Shanghai GM and sold through its network of nearly 400 Buick dealerships across China. The new model will complement the rest of Shanghai GM's popular Buick lineup, which includes the Park Avenue and LaCrosse premium sedans, Regal upper-medium sedan, Excelle family, and GL8 and FirstLand executive wagons.

GM operates seven joint ventures and two wholly owned foreign enterprises and has more than 20,000 employees in China. GM, along with its joint ventures, offers the broadest lineup of vehicles and brands among automakers in China.
Products are sold under the Buick, Cadillac, Chevrolet, Opel, Saab and Wuling nameplates. 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.


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    • 1 Second Ago
  • 19 Comments
      • 7 Years Ago
      As a Lansing resident who passes the Delta Township plant twice a day while communting, I'm thrilled to see this. I'm also saving my pennies for an Enclave Super with a high-tech V8 . . . maybe an LSx (Are you reading this, GM?)?

      Peace
      policy
      • 7 Years Ago
      This was a forgone conclusion shortly after the concept was revealed. Shanghai GM will probably tailor the interior of the Enclave to the Chinese market just like they did to the Holden Statesman to make it the Park Avenue.
      • 7 Years Ago
      'cause the quality level they are on is on the same plane as most china car manufacturers !! yow...

      i mean come on.. wouldnt you rather drive a '74 Rambler over most chinese vehicles?

      seriously, i think either they all love Tiger Woods, or since the econo is booming there, they all want to ride in big old american name plates as a status thing.

        • 7 Years Ago
        how about the fact that buick tied with lexus for the most reliable vehicles on the planet?

        "they in turn destroy whatever is left of their reputation by sending production to China"

        read closer, vehicles will be sent TOO china, imagine that, a product built in the USA sold in china.
        • 7 Years Ago
        >'cause the quality level they are on is on the same plane as most china car manufacturers !! yow...

        LOL. It's so funny because it's so true!

        The only road for GM is down. The UAW will destroy them in North America, they in turn destroy whatever is left of their reputation by sending production to China. It's over.
      • 7 Years Ago
      What a ugly looking vehicle
      • 7 Years Ago
      Furher proof that this country is full of morons.
      (refering to the posters above, except naggs)
      • 7 Years Ago
      Why is Buick so popular in China?
        • 7 Years Ago
        Buick has always come across as an opulent aspirational brand in China.
        It meant something.
        Not like in North America when Buick means rusted Century with Grandma driving twenty under the limit.
        • 7 Years Ago
        I could give a crap what Buick "means"...if Americans are building them for export to a country that demands Buicks, that's enough for me.
      • 7 Years Ago
      In my opinion, the Enclave is disproportionate and disjointed in its appearance, and the other lambdas are far more attractive. With that in mind, if GM is only selling one lambda model in China, I suggest they rebadge the less eccentric Outlook or Acadia as a Buick and export that vehicle to China.
      • 7 Years Ago
      idea to export cars to china as they import so much here.
      • 7 Years Ago
      Because of auto strike GM may build in China & import to USA!!!!
        Carlos
        • 7 Years Ago
        That is exactly what's going to happen if the UAW keeps up with this crap. I'm not for job outsourcing at all because America needs all the jobs they can get, but the UAW is really asking for it.
      • 7 Years Ago
      Awesome. More money for GM. Now, if they could just bring over some of those Chinese-market Buicks...new Park Avenue, drool.
        • 7 Years Ago
        Exactly. That would be a fair trade -- send some Enclaves over there in exchange for the Chinese-market Park Avenue!

        Problem is, in the current climate, the UAW would have a fit. After all, the article suggest thats the move to export Enclaves to China may just be GM kowtowing to the UAW.
      • 7 Years Ago

      So should GM save some money and spray these with lead based paint (just to return the favor)?
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