America Will Build China's New GM SUVs

Industry News / 11 Comments

From the Tahoe to the Escalade.

For the first time ever, General Motors has plans to sell its full-size SUV lineup in China. This includes the Chevrolet Tahoe and Suburban, GMC Yukon, and the Cadillac Escalade. However, unlike the rest of the vehicles the Detroit-based automaker sells in that country, these SUVs will be imported from America.

Reuters has confirmed this relevant information which is also good news for GM as a whole; China is, so far, the world's only major economy to grow this year during the coronavirus pandemic. Having popular SUVs on hand will only help further establish GM's Chinese presence. Currently, all four of these SUVs are on display at the China International Import Expo in Shanghai.

"Our intention is to get customer reaction and find a way to sell these cars in China," said GM's China chief Julian Blissett.

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Another reason why GM is anxious to sell these SUVs in China is because of the nation's growing families. While GM does build and sell SUVs and crossover in China, specifically Buicks, it's never sold full-size SUVs before, so this is something of an experiment. Because of this uncertainty, production will continue to take place in Arlington, Texas. GM has not provided an official on-sale date for any of these SUVs, but it's widely expected to begin sometime next year. "We are looking into a variety of market sales plans for these vehicles, including online sales, leasing and others," Blissett continued.

What's interesting about GM's full-size SUV Chinese market entry is that the country recently pledged to ban sales of any new vehicles that aren't hybrids or pure battery electrics by 2035.

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Currently, GM doesn't offer any of these SUVs with a hybrid powertrain, let alone an all-electric one. That will likely change in the next few years once the Escalade EV arrives on the scene. But right now is the perfect time to establish a full-size SUV presence and some Chinese customer loyalty.

The report also indicates GM is considering plans to export Chinese-made EVs globally, though nothing was specifically mentioned whether these vehicles will arrive in the US. Tesla, for example, will soon begin exporting Model 3 sedans from its Shanghai production facility to Europe. If Tesla can do this, so can GM.

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