The JV between General Motors and the Chinese company SAIC has paved the way for the latter to enter India. Headed by a senior engineer a team of technicians is on the way to India. This team will assess the situation and forward the report to the SAIC Board in Hong Kong. The assessment will include everything – engineering, finance, manufacturing- related to the JV. All these modalities were confirmed by the President of GM India. There won’t be, he said, any cramping of structure in the officialdom and disproved the rumor that a senior official from SAIC would likely occupy the post of Deputy MD in the JV.
But there are speculations that a three member team of officials will take charge on April 1. Differing from the earlier ownership of GM by Korea and Australia, the new venture gives room for huge volume of LCVs and passenger cars from the platform of SAIC. By this the target for the next three years will be treble than the current one. The JV platform will concentrate on pick ups, people carriers and vans to counter the market strategy of Maruti Omni and Tata Ace. Halol facility will be pressed into service for making LCVs and Talegaon plant will look after making of passenger vehicles(barring Tavera).
Under the pact by 2011 the first commercial vehicle will hit the road. Dealing of LCV cars would be separate between the companies under a new brand name. there will be assembling of cars in India with the design and make, instead of going for importing the CBUs from SAIC plants. All passenger cars are to be branded under Chevrolet and there would be new brand name for the commercial vehicles. SAIC-GM joint venture will not involve Wuling brand in India still they are in market outside China.