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News of  February 07, 2001
.

More Than 15,000 Chinese Place Deposits For Buick Sail
.
Shanghai GM Distribution Network Reaches 76 Retailers

SHANGHAI - More than 15,000 Chinese residents have placed deposits with Shanghai General Motors retailers for the new Buick Sail, the first modern compact car to be built in China.

The early orders, each accompanied by a minimum 5,000 reminbi ($600) deposit, have come in the six weeks since SGM began accepting orders through its nationwide retail network. The Sail, a five-seat compact engineered and designed for Chinese consumers, will range in price from 100,000 RMB ($12,000) to 125,000 RMB ($15,000).

"We are very pleased that the level of excitement shown for the Sail is meeting our expectations," said Chris Gubbey, executive vice president of SGM, the 50-50 joint venture of General Motors and Shanghai Automotive Industry Corp. (Group). "These customers will be the first to experience the world-class quality, comfort and safety features of the Sail."

Deliveries by SGM retailers to customers will begin in June.

In part because of the mainstream appeal of the Sail, Shanghai GM in January signed 17 more retailers, expanding to 76 sales outlets and 62 authorized after-sale service centers nationwide.

The newly signed retailers in Jinhua, Lanzhou, Quanzhou and Jiangmen are examples of Shanghai GM's expanding presence into China's county level cities. Shanghai GM has at least one retailer in every Chinese province except Tibet and Qing Hai.

"The fast development of SGM's distribution network demonstrates the company's customer-focus philosophy," said Sun Xiaodong, director of SGM marketing and distribution. "The well-established network over the country can provide our customer with best service, products and after-sale quality and convenience."

SGM has strict requirements for its authorized retailers, including managerial and sales standards and financial and customer resources. Each employee at the new outlets received 90 hours of training before becoming authorized SGM's retailers. SGM monitors its retailers' performance to ensure customers consistently receive the best sales and after-sales service.

SGM is the first automaker in China to adopt a single-tier distribution system, in which the retailer that sells the car develops a relationship with the customer and handles service and other needs as they arise.

Shanghai GM sold more than 30,500 cars in 2000, a 54 percent increase over 1999. The Sail, which goes into regular production in April, is the third distinct model to be built at SGM, joining the upper midsize sedans, G, GL, GLX, XSJ and GS models, and the GL8 executive wagon.

(Feb. 1, 2001)

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