NYT: GM Thrives in China With Small, Thrifty Vans (but creative exec gone)

[DeepModem Mom]

G.M. Thrives in China With Small, Thrifty Vans
BY KEITH BRADSHER
Published: August 9, 2005


LIUZHOU, China - In this obscure corner of southern China, General Motors seems to have hit on a hot new formula: $5,000 minivans that get 43 miles to the gallon in city driving. That combination of advantages has captivated Chinese buyers, propelling G.M. into the leading spot in this nascent car market.

Compact and utilitarian, these vehicles, called Wuling Sunshine minivans, hardly fit the big-is-better image of G.M., known in the United States for producing some of the largest gas guzzlers on the market, like Hummers.

The minivans, which G.M. builds in a joint venture with a Chinese partner, have a quarter the horsepower of American minivans, weak acceleration and a top speed of 81 miles an hour. The seats are only a third the thickness of seats in Western models but look plush compared with some Chinese cars.

Their development was led by an American, Philip F. Murtaugh, a native of Ohio and a maverick executive who was willing to zig while the rest of G.M. was zagging. Mr. Murtaugh was able to create in China the kind of innovative environment that the company has struggled for decades to achieve in its American operations. But whether G.M. can duplicate elsewhere its achievements in China or even keep its pace here is unclear.

In what may be a telling sign of the corporate culture at G.M., Mr. Murtaugh's success in China led not to promotion but to his departure from the company. G.M. declined to discuss personnel matters, but both it and Mr. Murtaugh said he resigned and was not dismissed....


http://www.nytimes.com/2005/08/09/automobiles/09mini.html?hp&ex=1123560000&en=a1770f0d2b290153&ei=5094&partner=homepage

[lithiumbomb]

1. old mitsubishi model

Just a backstory, these are an old Mitsubishi micro-van design that was sold in various countries. Sold in the US as a non-road legal pickup under Mitsubishi and Cushman brands. I'm guessing GM and their partner bought the assembly line, which is how a number of car and truck models find new life in China, India, etc.

[Dover]

2. Thanks for that info........and welcome to the Underground!

It that's true, then he's this guy was probably not quite the innovator that the article describes, but he made a good call on that particular market, and also incorporated many characteristics of the Japanese business model...according to the article.

[DeepModem Mom]

5. Thanks, lithiumbomb -- and welcome to DU!

[Dover]

3. And this is why he was fired. He doesn't fit the model.

The Chinese government has also encouraged a shift toward more efficient models through stringent fuel-economy regulations, even as Congress has opted for more subsidies for oil production and a limit on hybrid car subsidies.


The current U.S. strategy of the automotive industry seems to be in lockstep with the oil companies. But how that is helpful to them is beyond me. Unless GM WANTS to go bankrupt.

[Trillo]

4. Why can't Americans buy $5000 dollar mini-vans that get

40+ MPG?

[Demeter]

6. Where's The Ripoff in That?

My goodness, if you could get what you wanted, at a price you could afford, how would Carlyle stay in business? Or Halliburton? Or Enron, World Com, Tyco, um, never mind!

[htuttle]

7. You can....but they're not as nice as the Chinese ones

Here $6496, MSRP, it actually gets MUCH higher than 40mpg -- more like 80mpg:



http://www.bajajusa.com/3-wheelers.htm

They are street legal in the US, and there are three configurations (van, flatbed and 'rickshaw' with extra seats).


Sure, it ain't pretty, but you can't beat the value. You just wait -- in 10 years, you'll be willing to drive something like this.