From factory to tech frontier: China becomes legacy automakers' innovation engine
By Reuters
July 8, 20267:04 AM GMT+8Updated 1 hour ago
- GM to export first China-developed Buick, use Xiao Yao platform in next Cadillac Optiq , source says
- Legacy automakers tap China R&D expertise to stay competitive
- China-built AUDI E5 outsells locally adapted Mercedes CLA in China
- Shift toward China-led innovation also sparks some concerns
SHANGHAI, July 8 (Reuters) - In May, General Motors marked a rare milestone for a foreign automaker in China, selling more than 10,000 of its new Buick Electra E7 in the first month.
While the nameplate is all-American, everything else about the car is Chinese — it was developed entirely at the technical centre GM runs with local partner SAIC.
GM plans to export the car to South Korea and use its China-built platform in the next iteration of the Cadillac Optiq, said a person with direct knowledge of the plans, which are reported here for the first time.
For years, global automakers used China as a low-cost manufacturing base to churn out cars developed at headquarters. Now, GM, Volkswagen and Renault are handing development to Chinese engineers, leveraging the country's growing advantage in critical technology such as electric powertrains and advanced software.
China teams are getting more autonomy, too. As a result, headquarters no longer call all the shots, said Zhu Yulong, a former GM engineer in China and now an independent auto analyst.
With the Electra, "the product definition and technical roadmap are for the first time firmly in the hands of the China team," Zhu said.
A GM China spokesperson declined to comment on potential exports or future market plans but said it was focused on developing vehicles and technologies that resonate with customers in China and elsewhere.
While China-developed technology was once meant only for the local market, it is increasingly being adapted to rollout globally, auto executives and analysts said.
The new Buick uses the Xiao Yao platform developed by engineers at SAIC-GM's Pan Asia Technical Automotive Centre (PATAC) in Shanghai, which has some 3,000 staff, according to SAIC-GM.
Xiao Yao — the name comes from a Daoist term meaning "freedom from burdens" — features a 900-volt supercharging system and a plug-in hybrid powertrain and delivers what SAIC-GM said is market-leading fuel efficiency.
Its features aren't available on Detroit-developed GM models.
Using Xiao Yao in the new Optiq would replace the Detroit-developed Ultium platform used in previous Optiq models, according to the person, who spoke on condition of anonymity.
While the Xiao Yao-based Electra has been a hit for GM in China, models built on the Ultium saw sluggish sales.
:quality(70)/cloudfront-us-east-1.images.arcpublishing.com/shawmedia/RZF3DGFMJZFZZKNW3TLZX4OMGU.jpg "An aerial view of new cars awaiting export to oversea markets is seen at a port in Shanghai.")
