(Shanghai Daily)
Updated: 2007-04-11 14:30

A Buick Park Avenue is displayed at a ceremony April 10, 2007 in Shanghai. The General Motors's car, a 5.2-meter-long sedan and equipped with a 3.6-liter capacity engine, costs 498,800 yuan (US$64,477). [Shanghai Daily]

Shanghai General Motors Co Ltd debuted a new midsize Buick sedan yesterday in the city to compete with Toyota's Crown, Chrysler 300C and Audi in the premier business car segment.

Shanghai GM, the joint venture formed by General Motors Corp and Shanghai Automotive Industry Corp, said the Buick Park Avenue, which targets business users, would be the flagship model of the Buick brand.

The Park Avenue sedan, powered by either the 2.8-liter or 3.6-liter engine, is available in five specifications with prices ranging from 328,800 yuan (US$42,710) to 498,800 yuan. The model will hit the market in May.

A 2.5-liter Toyota Crown costs 298,000 yuan to 302,000 yuan while the Chrysler 300C has a minimum price of 339,000 yuan.

Industry insiders said the niche premier sedan segment's impact on sales will not be direct, but it will help build up the brand image and further reflect Shanghai GM's strategy to develop a complete product mix in China.

Shanghai GM also produces the Excelle, Sail, Regal and LaCrosse models under the Buick brand in addition to Chevrolet, Cadillac and imported Saab.

China's top seller last year is using the popular Buick brand and rising Chevrolet brand to maintain its steady growth.

The increase in Buick's sales in China helped to offset the GM's sluggish sales in its home market in North America, where cutback in production caused sales to drop 30 percent in the first two months of this year.

Sales of Buick gained 25 percent to 304,230 vehicles last year in China on high demand for the Excelle economy sedan, boosting the brand's market share to 11.8 percent from 11.2 percent a year earlier.

Buick sales also contributed 73 percent to the sales of Shanghai GM during the same period when it sold 413,367 units in China, a jump of 27 percent year on year.

Ten new or revamped GM models will debut in China this year to meet the firm's sales target of one million units in China this year.