The establishment of Shanghai GM's new base in Wuhan is not just a matter of how simple it is for a multinational vehicle manufacturer to produce in China. Shanghai General Motors entered Wuhan at the Dongfeng Motor Base Camp and thought that the competition between Dongfeng and SAIC is now being given the positive competition between SAIC and Dongfeng.

At present, in China's traditional three major automotive groups, SAIC is in the upper hand in terms of scale, with the east wind ranking second. However, in terms of operating income and profits, Dongfeng is at the upper hand and SAIC is in second place. In the future, SAIC and Dongfeng will vie for the status of leading companies in the Chinese automotive industry.

Last year, Dongfeng sold more than 3 million vehicles and SAIC exceeded 4 million. However, both have their own advantages. SAIC Motor has become an important force behind SAIC Motor’s priority to Dongfeng with its three million-dollar joint ventures, especially SAIC-GM-Wuling, but its disadvantage lies in the commercial vehicle segment. Dongfeng’s advantage lies in the balanced layout of passenger cars and commercial vehicles. The disadvantage is that only Dongfeng Nissan has a leading position in the industry.

At the end of last year, the "Dry D300 Plan" issued by Dongfeng Automobile proposed that by 2016, the sales volume of its own brand will reach 3 million. This plan was considered by the industry as a direct result of the competition to SAIC Motor Corporation and wanted to seize the triple crown of industry scale, revenue and profit.

It is in the context of this industry that after the Shanghai GM Wuhan Base Environmental Impact Assessment was publicized, a message appeared on a forum in Hubei that “Shangqi hits the door”.

In the introduction of other automobile projects, Wuhan has been cautious. Wuhan once rejected the settlement of other independent brands, but large projects like Shanghai GM could not be rejected.

At present, the production layout of major auto groups has long been mixed together. Dongfeng has placed Infiniti's domestic base in Dalian and is also entering the Northeast region where FAW is located for the first time. It will also become a bridgehead for the expansion of Dongfeng.

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