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GAC debuts new SUV; to open US R&D Center

By PAUL WELITZKIN in Detroit | chinadaily.com.cn | Updated: 2017-01-10 06:52

If Chinese carmaker Guangzhou Automobile Group (GAC) wants to enter the US market, the mid-sized sport utility vehicle it unveiled on Monday – known as the Trumpchi GS7 – at the North American International Auto Show in Detroit could be its first offering.

GAC, started developing its homegrown Trumpchi car brand in 2010 at a time when the Chinese market was dominated by foreign brands. The company intends to open a research and development (R&D) center in Silicon Valley in California later this year, according to Liang Weibiao, GAC vice-president.

"We would like to be in the US market and the R&D center is a good start," Liang said in an interview. "Eventually we would like to produce vehicles in the US."

Weibiao said GAC currently has sales and service networks in 14 countries including Bali, Chile and Kuwait. "We also have a manufacturing company in Nigeria," he said.

The Trumpchi GS7, a mid-sized SUV that seats five, comes as SUV sales in China are heating up just like in the US.

"China is moving in that direction as over 90 percent of our sales in China in 2016 were SUVs," said Zhang Fan, vice-president and head of the team that developed the GS7.

"The Chinese economy is growing and the Chinese consumer likes a more spacious vehicle," added Liang.

The GS7 is based on the same platform that underpins the GS8, a three-row SUV that seats eight said Fan. It is powered by a turbocharged 2.0-liter four-cylinder engine.

GAC also unveiled an electric car called the GE3. According to Hao Su, an engineer with GAC, the GE3 has a driving range of about 200 miles before needing a charge.

"You can charge up the batteries two ways," said Hao. "One is a quick charge that takes about 30 minutes and last for eight hours. The other is a slow charge that takes eight hours."

Charging must be done at a charging station, Hao said. Electric vehicles are expected to take an increasing share of the Chinese market as air pollution is a serious problem in the mainland.

The government is trying to encourage consumers to purchase electric vehicles. Hao said the cost of the GE3 is about 200,000 yuan ($28,839.64).

"With tax credits the cost can come down to about 100,000 yuan," Hao said.

GAC also introduced its first plug-in hybrid electric concept car called the EnSpirit which the company said symbolizes its vision to develop technologically advanced vehicles.

In 2016, GAC sold about 380,000 vehicles in China, soaring 96 percent from the 2015 total.

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