GM introduces China-only entry-level sedan

(August 9, 2011) SHANGHAI  — General Motors has introduced its first sedan under a new China-only brand to cater to entry-level buyers in the world's largest auto market. The four-door 1.5-liter Baojun 630 sedan starts at 62,800 yuan ($9,750), according to the company.

The car will be available in three variants and sold to 120 dealers in eight cities, including Zhengzhou, Nanning, Changsha and Harbin.

GM joins Honda Motor Co. in creating cheaper China-only brands to boost sales among first-time buyers as overall vehicle deliveries slow this year after the government phased out incentives and imposed ownership restrictions to curb traffic congestion.

The Baojun brand is targeted at "young professionals and young families" with the focus in so-called second- and third-tier cities, Matthew Tsien, the executive vice president of the automaker's China unit, told reporters in Chengdu, southwest China.

GM aims to sell 20,000 Baojun sedans this year, Tsien said. The Chevrolet Spark car will be rebadged in China under the Baojun brand, which will focus on developing smaller vehicles, he said.

Sources: Bloomberg News, Automotive News