• 25.08.2024

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GM Launches Daolang Brand Center in Shanghai with New Chevrolet TAHOE

Aug 22, 2024

On August 20, General Motors opened its first brand center in Shanghai under the high-end imported vehicle and lifestyle platform, Daolang. At the same time, the Chevrolet TAHOE launched. This new model is a full-size SUV with a 2.7T turbocharged engine. It offers two configurations, priced between 648,000 and 728,000 yuan (101940$). Before the launch, we interviewed Li Long, president of Daolang and vice president of GM’s high-end import business. He shared Daolang’s future plans and information about TAHOE deliveries. Regarding TAHOE deliveries, Li Long noted that the import status and production method result in longer delivery times. The first batch is expected to deliver in the first quarter of next year. He emphasized the importance of customer operations for a new brand. We need to excel in customer calls, follow-ups, and showroom experiences while showcasing our unique features in community operations. Here are more questions from the interview:

GM Launches Daolang Brand Center in Shanghai with New Chevrolet TAHOE

Reporter: Since the pre-sale at the Beijing Auto Show, how has user feedback been on the Taihao? What are Daolang’s future plans for channel layout? Li Long: The domestic models match the highest configurations available overseas. After we announce the final specs, users will better appreciate our competitive pricing. As Daolang’s first model in China, the Taihao is a legendary full-size SUV. It has ranked first in sales in its segment in North America for years. Currently, no similar models exist in China, making this car a pioneer for the Daolang platform. Daolang’s future product plans will balance fuel and electric vehicles. We aim to introduce GM’s star models. Today, the first brand center opens. This marks a faster expansion for Daolang. In the future, we plan to establish brand centers, experience centers, and service centers. The brand center will showcase products and serve as a hub for community events. The experience center will offer customer experiences, test drives, and delivery services, focusing on reaching more potential users and improving customer acquisition efficiency. The service center will provide after-sales maintenance over a wider area, an important part of our future strategy. Reporter: You previously mentioned wanting to build the Daolang brand like the “Marvel Universe,” with cars as superheroes. Which superhero does the Taihao resemble? Additionally, which cities will Daolang choose for its channel planning? Li Long: Daolang’s channel layout will initially focus on first- and second-tier cities, including brand and experience centers. By the end of next year, our network should cover most target markets nationwide. For more remote areas, we will adopt flexible sales methods and ensure local customers receive complete after-sales service. Reporter: This year, Daolang will introduce two fuel vehicles. What are your market expectations for these models? How do you view the current automotive market, including price wars and luxury car performance? Can you share any expectations for next year? Li Long: Whether in the fuel or electric vehicle era, the automotive industry remains core. We view the industry’s status positively. In the 600,000 and above segment that Daolang focuses on, few brands achieve significant sales. The overall market faces challenges. This year, the sales in the segment exceeding 600,000 units are expected to reach about 260,000. We aim to capture 2% to 3% of this segment with the launch of two models. The Chinese market is large enough for each product to find reasonable growth space. Reporter: Can you introduce the advantages and features of the Daolang platform? Also, what plans does Taihao have for high-end customers and lifestyle creation? Li Long: Daolang currently uses a direct sales model that fits our operational scale. The brand center and experience center will ensure we manage every touchpoint in the sales process. This guarantees consistent service quality and direct communication with users, helping us provide personalized and premium services. Additionally, we plan to introduce popular models from General Motors that have never officially entered China. Soon, the iconic American sports car Corvette is expected to enter China through the Daolang platform. Reporter: How do you position the Daolang brand? The brand centers are mainly in first and second-tier city centers. How will you manage after-sales service for consumers? Li Long: Daolang relies on General Motors’ strong service network. We will carefully select qualified dealer partners and continuously expand the coverage of Daolang service centers. Through dedicated service personnel, we will ensure every customer touchpoint aligns with the brand’s tone, providing a consistent service experience. This way, every owner can drive with confidence and peace of mind, no matter where they go. Reporter: In the current competitive market, many brands do not prioritize profitability. Imported cars face greater challenges. Will Daolang be affected by market conditions and profits? Daolang represents General Motors’ first attempt at direct sales. What do you see as the challenges and difficulties of this model? Li Long: The rapid iteration of new energy vehicles means users prioritize features, range, and price. The market supply is ample. The high-end car market still mainly consists of fuel vehicles, with consumers focusing on personalization. Price fluctuations are less significant than with new energy vehicles. Imported cars will experience some time to adjust supply and demand, leading to price volatility. However, compared to mainstream new energy vehicles, the prices remain relatively stable. I believe direct sales have no good or bad. Both direct sales and distributors must match their business scale. We expect to capture 2% to 3% market share. Direct sales suit our scale best. If our business grows in the future, we will adjust our operating model objectively and pragmatically. Reporter: What preparations will Daolangge make for selling high-end electric vehicles in terms of channels, services, and marketing? What are the mid- to long-term considerations for the pure electric market? Li Long: Our current goal is to ensure the brand’s business model succeeds. We focus on fuel vehicles. With two new models this year, we aim to enhance customer experience and brand positioning. For General Motors in China, the market above 600,000 is a new segment. It is crucial to establish Daolangge’s brand positioning early. Users are willing to pay for good service and sentiment. Reporter: When does Taihao expect to deliver to customers? What are Daolangge’s operational plans? Li Long: The delivery cycle for imported cars is longer. Taihao will likely deliver in the first quarter of next year. Our products are produced in Arlington, USA. The US market performs well, affecting delivery times. We will negotiate for more quotas with our US headquarters and seek some available stock. Customer operations require solid groundwork. We must excel in basic tasks. We expect our team to match the market leaders. After product delivery, we will introduce unique community activities aligned with our brand. We do not want to overinterpret customer operations and brand activities. We aim to serve customers well and establish a systematic operation. Reporter: How can we ensure we are pure import cars while reflecting local user voices? Li Long: We will take two steps. First, we will introduce authentic American products. Next, we will increase localization efforts to better meet Chinese users’ needs and expectations. Smart driving and smart cockpits are key areas for us in the future. Reporter: What does luxury mean at Daolangge? Do our products have clearer labels?

Reporter: How can we encourage potential customers to visit our store as a niche, high-end imported car brand? Li Long: Our core goal is to enhance customer acquisition efficiency and quickly reach target users. Daolangge will not use a broad, indiscriminate approach. We aim to use traditional marketing methods to make customers consider us first, leading to test drives, comparisons, and choices. Additionally, we will focus on cultivating seed users. Their positive word-of-mouth will help us expand and generate referrals. Brand operations require more than a launch event. We must master our fundamentals and ensure consistent customer experiences across all aspects. This consistency should meet customer expectations. Under this premise, we will enhance operational efficiency. For instance, we aim for low customer acquisition costs in our online strategy. The main role of our brand center is to promote the brand, place our products on customers’ buying lists, and shape customer perceptions. Our experience center in the suburban auto city will achieve true efficiency.