TUESDAY JUNE 6 2000      PUBLISHED BY CHINA DAILY
                                                           BUSINESS

Michelin sells safe driving
GLOBAL tyre maker Michelin Group has launched a programme aimed at educating student drivers about the correlation between tyre maintanence and road safety.

Suzhou Creek renewal aids seller
A DEVELOPER of Tianding Garden, located at Suzhou Road West, is expecting better sales of the residential property with the official launch of the revamping project of Suzhou Creek by local government.

Live the e-life at downtown property
HONG Kong-based Shui On Properties Ltd and Shanghai Zhonghong Group, developers of Ruihong Xincheng residential estate, have teamed up with IBM to provide multimedia e-living infrastructure.

Banks unload bad loans
THE establishment of China Orient Asset Management Co (COAMC) last month, has brought to four the State-owned national asset management firms since last April, when China Xinda Asset Management Co - the first national asset management firm - made its business debut in Beijing.

Local dotcoms up in arms about tactics
PORTALS in China say the launch of the government-funded Eastday.com website has not adversely affected their membership or visitor numbers.

Brief

Eastday debut a smash
MORE than 50,000 Internet users bombarded Eastday.com within minutes of its launch on May 28, all trying to be among the first batch of registered users, said staff with the new website.

Dow Corning to expand westwards
CHINA'S entry into the World Trade Organization (WTO) will be a tremendous business opportunity for Dow Corning to strengthen its presence in the market that has one quarter of the world's consumers, a senior manager of the US-based global silicon material giant said.

Trains for metro, light rails arrive
NEW metro trains to be used on Metro Line 2 and the elevated light track under construction have arrived in Shanghai from Germany.

US helps export index stay buoyant
THE composite index for China's export containers was reported at 1,179.02 points yesterday, up 1.8 per cent last week.

GM leads the way with more choice in cars
By Zeng Min

WITH the new GM e-concept car, driving is about much more than getting from A to B.

You can move your office in the e-concept car, go on-line to search for your favourite food, CDs or fashion or films, or buzz your business partners and family with the mobile system installed in the car.

The e-concept car, the latest model to be introduced to the China market, is a star attraction at the sixth Beijing International Auto Show from today to June 12 in Beijing.

The Buick series sedan and W-wagon produced by Shanghai GM, a joint venture of General Motors, the world's largest auto maker, were able to enjoy some of the limelight alongside the cyber car.

Interactive design

The appeal of these models is that Shanghai GM has designed them in response to the needs of customers, said Chen Hong, president of Shanghai GM.

"The needs of the client are our paramount concern in developing new cars. If we fail to meet the requirements of customers, the cars will not sell," he said.

The company keeps up with what customers really want with the latest international sales model, consulting marketing. GM marketing agents offer buyers advice and information relating to cars including car maintenance and quality.

The Buick GL8, a seven-seater wagon for business and family use, was produced in this way based on the results of a GM poll of car buyers in various Chinese cities.

The company believes the improving living standards among residents of China's big cities will lead to a boom in the family car market, the major new target market for its expansion.

"Sales of family cars in China, especially in Shanghai, will skyrocket in the next few years as incomes rise," said Philip Murtaugh, general manager of GM China Inc's Shanghai office.

Generally speaking, he said the private car market will take off when per capita gross domestic product (GDP) exceeds $3,000.

"Shanghai's GDP is already in that territory and I think it is time to talk about putting more fancy family cars onto the market," he said.

Shanghai's per capita GDP shot up to $3,720 last year from $3,400 in 1998. The figure is expected to hit $4,000 by the year-end.

Murtaugh said GM is keeping a close eye on the demand for private vehicles among locals and waiting for the right time to jump into the market.

A recent poll of 1,580 families in Shanghai, Beijing and Guangzhou found nearly 80 per cent wanted cars to be low cost, priced less than 100,000 yuan ($12,000), high-tech and small in size.

Soaring sales

Rising sales of Buick sedans to individual buyers have given GM greater confidence in the prospect of the family car market.

"The number of individuals who have bought our Buicks has exceeded our expectations," he said. Currently, about 10 per cent of Buick buyers are single persons.

Murtaugh, also executive vice-president of Shanghai GM, the production base for Buick sedan in Pudong, believes more effort must be made to diversify the market in China and increase the company's market share.

SGM has decided to double production of Buicks in the new millennium to 50,000 units from 23,000 this year.

The sedan, modelled after its popular US counterpart including the latest high-tech features, was launched in the Chinese market last May. More than 17,000 have been sold and over 20,000 orders secured.

SGM will debut the W-Wagon or Buick GL8, a seven-eight seater suitable for business and long journeys, in June. It is based on the same design as the sedan, with many of the safety and comfort features of the Buick sedan.

The first wagon came off the assembly line in December 1999 and regular production began from May.

GM debuted another new model in April 2000. The Buick GS, the newest member of the Shanghai GM Buick family, will be launched this month.

Copyright 2000 by Shanghai Star. All rights reserved.