General Motors Reorganizes Thai Hard Goods for the Globalization of ASEAN Great Wall Motor

On February 17, Great Wall Motor and General Motors jointly announced that Great Wall Motor would acquire GM's manufacturing plant in Luo Yong, Thailand. According to the binding terms and conditions signed by both parties, GM Thailand, including Rayong House automobile factory and powertrain factory, will be handed over to Great Wall Motor, and both parties plan to complete the transaction and finally hand it over before the end of 2020.

General situation of Luo Yong factory in Thailand

(1) Vehicle Factory

General Motors Thailand Vehicle Assembly Plant was put into operation in 2000, located in Luo Yong Free Trade Zone, covering an area of 8 1.8 1.000 square meters, with more than .500 employees/kloc-0 and a maximum annual production capacity of 1.35 million vehicles.

1.？ Two models in production: Chevrolet Colorado (pickup truck) and Chevrolet Trailblazer (SUV)

2.？ Since it was put into production in 2000, the factory in Luo Yong, Thailand, as a regional manufacturing center, has produced nearly 6.5438+0.4 million vehicles and sold them to more than ten markets in Southeast Asian countries, Australia, New Zealand, the Middle East and South America.

3.？ Luo Yongfu factory has an experienced and skilled local team.

(2) Engine Factory

GM Thailand Engine Factory was put into operation on 20 1 1, located in Luo Yong Free Trade Zone, with an area of 22,000 square meters and nearly 400 employees.

1.？ Production of 2.5L and 2.8L turbocharged 4-cylinder diesel engines.

2.？ 25% of the engines produced are used in the Thai market and 75% are exported.

3.？ Since 20 1 1, 400,000 engines have been produced.

Overview of Thailand's automobile industry

The prosperity of Thailand's automobile industry began after the 1997 Asian economic crisis. Automobile industry is one of the most important industries in Thailand, accounting for 9% of Thailand's GDP in 20 18, and also the largest export industry in Thailand, accounting for 15% of the total export value and 67% of Thailand's GDP. So Thailand is also the base of most manufacturers.

(c) The Thai market tends to be trucks and SUVs.

1.？ There is a strong demand for pickup trucks and SUVs in the Thai market.

2.？ Due to the economic recovery and the end of the five-year lock-up period under the previous government's first car purchase plan, in 20 19 years, Thailand produced and sold 2010.4 million cars, of which10.06 million were exported;

3.？ Due to the government's tax incentives and diesel subsidies, pickup trucks have always dominated the market and become an ideal choice for rural people in Thailand, and the market share of SUVs has increased.

(d) Abundant skilled labor and relatively low cost.

1.？ In view of the fact that automobiles are Thailand's largest export sector, the country has a large number of automobile industry workers, covering every link of automobile production;

2.？ There are 29 universities and colleges in Thailand that provide automobile and mechanical engineering training programs for employees in this industry.

4.？ Compared with other major automobile producing countries, Thailand's factories are low-cost production bases, while countries with lower wages than Thailand lack the infrastructure and suppliers trained by Thailand's automobile industry.

(5) Favorable potential economic and geographical trends.

1.？ Thailand is a developing market;

2.？ The population of Thailand has exceeded 70 million;

3.？ In 20 18, the GDP increased by 4.1%;

4.？ The 25th largest economy.

1. Why did Great Wall Motor choose to invest in Thailand? What are the reasons? Which countries will the factory export to in the future?

Thailand is a developing automobile market, and it is also a market with considerable prospects and great potential. Entering Thailand market is a key step for Great Wall Motor to enter ASEAN market, and it is also an important measure for Great Wall Motor's globalization strategy.

Specifically, Thailand has a world-class automobile manufacturing and supply base. Automobile industry is one of the most important industries in Thailand, accounting for 9% of Thailand's GDP in 20 18, and it is also the largest export industry in Thailand, accounting for 15% of the total export value. In 20 19, Thailand produced and sold 2010.4 million vehicles, of which10.006 million were exported. At the same time, there is a strong demand for pickup trucks and SUVs in the Thai market. Due to the government's tax incentives and diesel subsidies, pickup trucks have always dominated the market, and the market share of SUVs has also increased under the economic recovery in Thailand.

Second, Thailand has abundant skilled labor and relatively low manufacturing costs. Thailand has a large number of workers in the automobile industry. Compared with other major automobile producing countries, the Thai factory is a low-cost production base.

Third, from the macro environment, Thailand has good potential economic and geographical advantages. It is a developing market, ranking 25th in the world, with a population of over 70 million, and its gross domestic product shows an increasing trend in 20 18. For investors, Thailand also has favorable trade agreements and government incentives. It has signed free trade agreements and incentive plans with major export partners. At the same time, the automobile industry is the key factor for Thailand's economy to create economic value of 39 billion US dollars in 20 18, and it has been strongly supported by the government in the tax preferential plan.

In the future, Great Wall Motor will rely on its factory in Luo Yong, Thailand, radiate the whole ASEAN region with Thailand as the center, and export products to other ASEAN countries and Australia.

2. Why did Great Wall Motor choose to acquire GM's factory in Luo Yong, Thailand?

Great Wall Motor chose to acquire GM's factory in Rayong, Thailand, mainly because of its vehicle and engine production capacity, localization team operation ability and its superior geographical location, which met the strategic layout requirements of Great Wall Motor's entry into the Thai market.

Luo Yongfu Automobile Factory was put into operation in 2000, located in Luo Yongfu Free Trade Zone, with an area of 8 1.8 1.000 square meters, more than .500 employees/kloc-0, and the maximum annual production capacity 1.35 million. Since it was put into production in 2000, the factory located in Rayong, Thailand, as a regional manufacturing center, has produced nearly 6.5438+0.4 million vehicles and sold them to more than ten markets in Southeast Asian countries, Australia, New Zealand, the Middle East and South America. The engine factory was put into operation in 20 1 1, covering an area of 22,000 square meters, with nearly 400 employees, and has produced 400,000 engines.

At the operational level, Luo Yongfu Factory has an experienced and skilled local team who has a strong understanding of the local market and can supervise the operation. At the same time, the factory vehicle and powertrain manufacturing base is located in Thailand Free Trade Zone, which enjoys many tax benefits and export trade advantages.

3. Can the advanced technology of Luo Yongfu Factory put into operation in 2000 meet the needs of Great Wall Motor? On this basis, what upgrades will be made to the factory? Which models will be produced?

Luo Yongfu factory is at an advanced level in both process production line and space facilities. Since it was put into production in 2000, the factory in Rayong, Thailand, as a regional manufacturing center, has produced nearly 6.5438+0.4 million vehicles and sold them to more than ten markets. The models produced are Chevrolet Colorado and Chevrolet Trailblazer, both of which have advanced technology and high requirements for production lines.

The acquisition plan is to complete the transaction and final handover before the end of 2020. In the future, Great Wall Motor will decide whether to plan and transform the factory based on the existing production line of Luo Yongfu factory and its actual production demand.

The models to be produced by the factory in the future have not been determined. It is believed that with the deepening of globalization strategy, the global models of Great Wall Motor will increase and enrich day by day.

4. What localization adjustments will Great Wall make to its products and brands in Thailand and ASEAN markets?

Great Wall Motor will definitely make different adjustments in products and brands according to different market demands, and formulate strategies that are more in line with the local market. For example, in the Thai market, pickup trucks and SUVs are in strong demand. Due to the government's tax incentives and diesel subsidies, pickup trucks have always been the dominant market and become an ideal choice for rural people in Thailand. On the other hand, due to the recovery of Thailand's economy and the end of the five-year car purchase lock-up period under the previous government's first car purchase plan, the market share of Thailand's SUV is also increasing. Great Wall Motor will make localization adjustment according to the demand preference of Thai consumers. For example, the Thai market is a right-hand drive car, and we will also make adjustments in the production of models.

At the same time, for other ASEAN markets to be exported, Great Wall Motor will also do a good job in the localization strategy of products and brands according to market demand preferences.

5. As a part of globalization, does Great Wall have any plans to acquire core component enterprises? Or does Honeycomb Technology have plans to go to sea simultaneously?

Great Wall Motor has the self-supporting ability of engine, transmission and other core components, and whether it will be acquired in the future will depend on the strategic needs of the enterprise.

At the 20 19 Frankfurt Motor Show, Honeycomb Easy Creation, Honeycomb Energy, Noble Automotive System and Mande Electronics brought a series of technological innovations to this world-renowned industry event for the first time. Not long ago, at the Indian Auto Show, Great Wall Motor once again pushed a variety of core components to the world stage and competed with international giants on the same stage.

The factory in Luo Yong, Thailand also has engine manufacturing capacity. Great Wall Motor has the ability to build competitive high-quality products in line with Thailand's national conditions by virtue of its years of technical accumulation.

6. At present, what layout and planning has Great Wall Motor made in globalization? What are the priorities and goals of globalization in the future?

Globalization strategy is not only the key strategic plan of Great Wall Motor this year, but also the strategy that Great Wall Motor will adhere to and continue to implement in the future. Globalization is the only way out for China automobile enterprises, and Great Wall Motor must go out.

At present, Great Wall Motor has built a global layout of people, research, production, sales and supply. On the R&D level, Great Wall Motor has successively set up overseas R&D centers in Japan, the United States, Germany, India, Austria and South Korea, built a "seven countries and ten places" R&D pattern with Baoding headquarters as the core, and gathered the world's top automotive engineers, designers and IT experts to form a global independent R&D team.

In terms of production layout, Great Wall Motor has formed a "9+5" global production layout. In 20 19, Great Wall Motor's first overseas full-process vehicle factory, Tula Factory in Russia, was officially put into operation. In 2020, Great Wall Motor's globalization strategy was accelerated. In early 2020, Great Wall Motor acquired GM's Tarrigon plant in India and its automobile factory and powertrain factory in Luo Yong, Thailand. At this point, Great Wall Motor has formed eight complete process production bases in China: Baoding, Xu Shui, Tianjin, Yongchuan, Pinghu, Taizhou, Rizhao and Zhangjiagang. Overseas, it has three full-process vehicle factories in Tula, India, Taligang, Thailand and Luo Yong, and five overseas KD assembly factories in Ecuador, Malaysia, Tunisia, Bulgaria and other countries.

In terms of channel construction, Great Wall Motor has established wholly-owned subsidiaries in Russia, Australia, South Africa, India, Thailand and the United States. Relying on the five regional marketing centers in Russia, Australia, South Africa, South America and the Middle East, it sells well in more than 60 countries and regions such as Russia, Australia, South Africa, Chile, Saudi Arabia and Argentina, and has established more than 500 high-quality dealer networks.

7. What are the developments and changes of Great Wall Motor team?

To truly realize globalization, the establishment of localization team is an important part.

The globalization of China automobile brands is faced with whether it can have sufficient global layout and global control ability. To this end, Great Wall Motor has set up corresponding subsidiaries in Russia, South Africa, India, ASEAN, North America and other places, which are under the responsibility of professional teams. In the future, in Thailand, we will build an excellent team that can understand the Thai market and help the development of Great Wall Motor in Thailand and even the ASEAN market.

In terms of talent construction, Great Wall Motor has built a 10,000-person engineering and technical team, including more than 1000 overseas experts. Great Wall Motor focuses on product development, which provides a strong guarantee for vehicle product development and product verification from organizational planning and hardware facilities.

This article comes from car home, the author of the car manufacturer, and does not represent car home's position.