SHANGHAI – GM China, SAIC subsidiary Shanghai Automotive Industry Sales Co. (SAISC) and Shanghai-GM announced the establishment of the first Sino-foreign partnership for the sale of used cars in China on October 28.
GM China and Shanghai-GM both have stakes of 33 percent, with SAISC holding the remaining 34 percent in the newly founded Shanghai Chengxin Used Car Operation and Management Co., Ltd.
The joint venture will cooperate with current distributors of Shanghai-GM in the establishment of dedicated used car sales and service facilities across China. The facilities will offer used vehicles of Shanghai-GM’s Buick, Chevrolet and Cadillac brands as well as selected brands of other automakers. These facilities will be responsible for acquiring, repairing and certifying their vehicles according to the highest standards set by the joint venture.
Pilot used car facilities are planned for Beijing, the Yangtze River Delta, the Pearl River Delta and Shandong Province, with four facilities expected to be in operation by 2011. The partners aim to have about 20 facilities in operation within the next five years.
“There is currently no standardized system for the sale of previously owned vehicles in China,” said Kevin Wale, president and managing director of GM China Group. “Our new joint venture is adopting unified nationwide standards for the sale and service of used cars. Like our Shanghai-GM customers, our used car customers will enjoy a world-class shopping and ownership experience as well as the customer reassurance that only a manufacturer-backed certified program can provide,” said Wale.