[Lu Xiao: We are already at the table, and we have even more reason to sound the horn next year and take our rightful place at the table.]

Original | Car Reviewer

SAIC-GM, pushed to the brink, can only fight a desperate battle, unleashing fierce tactics.

On August 30, the all-new Cadillac XT5 debuted at the Chengdu Auto Show. Just a few days later, SAIC-GM boldly set a "limited-time one-price offer" for this new model, priced at just 279,900 to 339,900 yuan, a full 120,000 yuan cheaper than the recommended retail price.

Just over ten days later, on September 24, SAIC-GM repeated the same strategy, introducing a "Golden Autumn Limited-Time One-Price Offer" for the all-new Buick Envision Plus, starting at 169,900 yuan, with an additional trade-in subsidy of up to 25,000 yuan. This model is slightly larger than its predecessor, with significantly improved intelligence, but at a price 60,000 yuan lower.

With discounts of 60,000 and 120,000 yuan, Xue Haitao, the vice president in charge of marketing, joked that he had come to deliver benefits. Despite the joke, SAIC-GM's heavy burden is not easy to bear.

SAIC-GM was once the domestic sales champion and one of the Big Three traditional joint venture automakers (along with FAW-Volkswagen and SAIC Volkswagen). In 2017, the company reached its peak, selling over 2 million vehicles annually, a moment of glory that was followed by a gradual decline. In 2023, sales barely exceeded 1 million units, and in the first seven months of this year, sales were only 240,000 units.

SAIC-GM can't go on like this anymore!

On August 9, SAIC Motor issued an order transferring Xue Haitao from his position as deputy general manager of Wuling to the position of deputy general manager of SAIC-GM. The group's leadership gave him a mission: to increase SAIC-GM's sales and put the former sales champion back on a growth trajectory.

It can be said that Xue Haitao is the most suitable candidate selected by SAIC Motor within the group system - a post-80s individual with passion and new ideas for marketing and sales.

Wuling, where Xue Haitao was previously employed, is located in a corner of Guangxi province and is known in the automotive industry for its unconventional approach, quick thinking, and decisive action. It is famous for being fast to make decisions, quick to adjust, and ruthless in pricing.

Ruthless pricing requires skill, as it involves setting the price of a model in one go, hitting the consumer's psychological price point, and avoiding post-launch price cuts or backstabbing existing owners.

Twenty years ago, after graduating from university, Xue Haitao joined Wuling and rose through the ranks, eventually becoming deputy general manager in charge of sales. Wuling Hongguang MINI is his masterpiece and remains an important player in the micro-electric vehicle market to this day.

The one-price offers for the two new models mentioned above originated from Xue Haitao's ideas. By setting the price in one go, SAIC-GM demonstrates its sincerity to consumers, generates significant buzz, and reduces opaque practices in sales terminals.

For the one-price offer of the all-new Cadillac XT5, Xue Haitao invited Cadillac dealers nationwide to Shanghai to explain his intentions. After its launch, the results met his expectations. He said that on September 22 alone, 232 orders (with non-refundable deposits of 5,000 yuan) were placed, boosting dealer confidence immediately.

The all-new Cadillac XT5 is still in the pre-sale stage, but there are already signs of strong sales. Once it goes on sale on September 28, the pressure on delivery will increase. Currently, SAIC-GM is preparing to increase production capacity and has even sent a team to Germany to communicate with suppliers for a key component.

Consumers appreciate this no-nonsense approach to price cuts. After the Envision Plus went on sale, many people flocked to Buick 4S stores to see the car, but some customers found that some stores did not sell the 169,900 yuan model and complained to SAIC-GM.

Obviously, this could lead consumers to question SAIC-GM's sincerity. On September 26, SAIC-GM's Buick brand issued a statement clarifying that "starting at 169,900 yuan" is the bare car price that consumers can buy, and that the "Golden Autumn Limited-Time One-Price Offer" does not come with any additional purchase conditions.

SAIC-GM also stated that for consumers who cannot purchase the Envision Plus at the "Golden Autumn Limited-Time One-Price Offer" in stores, they can complain through the Buick customer service hotline, and dealers found to be in violation will be severely punished upon verification.

This amounts to a clear commitment to consumers that the one-price offer is not a gimmick and has no tricks.

In the past, SAIC-GM was accustomed to setting a higher recommended retail price to elevate the brand tone and then allowing terminals to discount sales. The result was that consumers did not recognize the factory-specified recommended retail price and were accustomed to waiting for subsequent price cuts, leading to a loss of potential customers during the waiting period. The one-price offer tells consumers that now is the best time to buy a car, and there is no need to wait any longer.

In fact, over the past month, SAIC-GM's style has undergone significant changes, with pricing strategies being just one aspect.

On September 23, SAIC-GM unveiled its secret next-generation MPV concept car, code-named OMPV. This stylish and tech-savvy model is SAIC-GM's weapon in the fight for the household MPV market and may even steal some share from the household SUV segment. It is expected to debut next year.

On September 25, SAIC-GM also announced its partnership with CATL to introduce the industry's first 6C ultra-fast charging LFP battery, which will be used in the Ultium quasi-900V battery architecture next year. This shows that SAIC-GM is also stepping up its efforts in the pure electric field.

Undoubtedly, after the appointments of the new general manager Lu Xiao and deputy general manager Xue Haitao, SAIC-GM suddenly accelerated, driving this elephant to turn quickly with a sense of urgency. Pushed to the corner by competitors, SAIC-GM is indeed in urgent need of change and innovation.

"Starting next year, we will launch a full counterattack!" Lu Xiao stated firmly in his first media interview on September 23, 44 days after taking office. His resolute stance inspired Xue Haitao, who said that Lu Xiao's firm stance could be inspiring. SAIC-GM needs this kind of encouragement.

What will be the basis for this full counterattack? Lu Xiao's answer is comprehensive electrification and intelligence.

Lu Xiao's confidence stems from his understanding of his own strength and the industry. At its core, the logic of automotive products is still about technology, and with a solid technological foundation, he is confident.

Lu Xiao was formerly the executive deputy general manager of the Pan Asia Technical Automotive Center (PATAC). For 27 years, PATAC has been responsible for designing and developing SAIC-GM's models, from the Sail, Cruze, Regal to the GL8. As the first joint venture automotive development center in China, established as a 50:50 joint venture between General Motors and SAIC Motor, it is also known as the "Huangpu Military Academy" of automotive design and development in China.

On September 23, the 2 millionth GL8 rolled off the production line, and with the unveiling of the all-new MPV concept car, SAIC-GM specially invited hundreds of media outlets nationwide to PATAC to revisit the development journey of the MPV leader GL8 from its first to sixth generation, demonstrating SAIC-GM's strong capabilities to the outside world.

In his public speech, he said, "Relying on our system capabilities and PATAC's technological heritage, SAIC-GM will sound the counterattack horn in 2025." By inviting Sun Yang, who made a comeback to win gold, as the spokesperson for the GL8 PHEV, SAIC-GM is expressing its unwavering ambition: after setbacks, it can still return to its peak.

To regain the sales championship, first, we must believe in ourselves and just get to work.

Previously, Lu Xiao was the one who consistently supplied models (cars) to SAIC-GM, and now he has become the head of this joint venture automaker. Therefore, he is well aware of SAIC-GM's foundation, especially the strength of its products. He said that after comparing the strength of its competitors, he is confident in SAIC-GM's future. "Their foundation is not as strong as SAIC-GM's."

However, he also admitted that while at PATAC, he only needed to develop models and deliver them to SAIC-GM. Now, at SAIC-GM, he also has to face customers. Good products do not necessarily translate into good sales, so he has high hopes for Xue Haitao's marketing adjustments and channel reorganization.

Adjustments are necessary. The decline from 2 million units to just a few hundred thousand units today must be due to some problems. Without reflection, there can be no progress. Lu Xiao, who aims for a full counterattack, is unashamed of this fact and attributes it to "product definition deviations and slow transformation to new energy vehicles."

In fact, just two weeks after Lu Xiao and Xue Haitao took office on August 9, Lu Xiao organized a meeting of all key SAIC-GM executives to study the situation and decided to fight four battles, "two of which are related to marketing channels and internal systematic adjustments and optimizations, while the other two are product battles."

The Buick GL8 and the all-new Cadillac XT5 represent these two product battles. Xue Haitao aims to implement a "big hit product" strategy, with Cadillac, Buick, and Chevrolet each creating a flagship model to streamline the product line and drive sales of other models. This is also the strategy Xue Haitao employed during his time at Wuling.

Under the "big hit product" approach, Xue Haitao reorganized the organizational structure and personnel, forming cross-departmental teams focused on sales as the core indicator. Departments such as regional sales, public relations, media, offline events, and strategy were reorganized into teams to streamline resources and improve efficiency. Teams have been established for the Buick GL8, Cadillac XT5, Cadillac CT5, and Buick Envision Plus.

The pain of adjustment is inevitable. Employees who have been reassigned to the teams admit that there are many areas they need to adapt to, but they all recognize the direction of Xue Haitao's adjustments, which are necessary for the company. Throughout SAIC-GM, there is a pent-up determination to prepare for the full counterattack.

Xue Haitao is also working on another important task: strengthening the dealer network to make the sales channels healthier. He aims to stabilize dealer confidence and reassure them that cars can be sold and profits can be made.

Lu Xiao revealed that from the beginning of this year to August, SAIC-GM's inventory decreased by more than 140,000 units, and it is expected that overall terminal sales for the year will exceed 600,000 units.

In August alone, SAIC-GM's national dealer inventory decreased by 35,000 units, giving dealers a breather and preparing them for a lighter load and a full counterattack next year.

After more than a month of in-depth understanding of SAIC-GM and PATAC, Xue Haitao has gained even more confidence in the company's products and technological foundation. He said that some of the technologies he had never heard of at Wuling are unmatched by domestic brands, which excited him. He acknowledged that SAIC-GM was slow to react to the advent of the new energy era.

"But being slow doesn't mean we lack strength. Our first PHEV Buick GL8 PHEV is still in high demand, with over 30,000 orders in hand," Xue Haitao revealed.

"The counterattack horn we will sound next year will not be limited to MPVs. We will definitely introduce pure electric, PHEV, and even extended-range vehicles in the mainstream sedan segment, and we will also introduce PHEV products in the most mainstream SUV market," Lu Xiao emphasized, stating that SAIC-GM will face competition head-on.

According to SAIC-GM's plan, by the end of 2025, its three major brands - Buick, Chevrolet, and Cadillac - will launch more than 10 domestically produced new energy vehicles based on GM's Ultium platform, including PHEV, extended-range, and pure electric powertrains.

"Anyway, the bullets are all his now. It's up to him to make the shots," Lu Xiao said admiringly of his young deputy general manager. He praised Xue Haitao for his drive and clear thinking, noting that Xue Haitao arrived in Shanghai with just a suitcase, leaving his wife and children in Liuzhou, which was no easy feat.