The General Motors Company (NYSE:GM)‘s former China head Murtaugh promised to revamp an upstart Chinese car maker. He has pledged to double the number of dealers in a quest to raise disappointing sales.
Currently, the chief executive of Qoros Automotive Co., Phil Murtaugh, endeavors to attract the young Chinese customers. This would be achieved by delivering vehicle quality at par with that of the foreign automotive majors. Also, unlike the foreign cars, the firm’s cars will be much more affordable.
As per data from consultancy Automotive Foresight last year Qoros sold approximately 7,000 cars in China. A total of 1,424 vehicles were sold in the first two months of 2015. As per the China Association of Automobile Manufacturers this year the Chinese market for passenger vehicles will cross 21 million.
A burgeoning market
It is pretty challenging to establish new brands in China’s crowded and hyper-competitive auto market. Over 120 auto brands are wooing car customers in China. A strong dealer network is a must to attract car buyers.
Qoros Automotive is collaboration between Singapore-based Kenon Holdings and China-based Chey Automobile Co. A long standing member of China’s automotive industry, Mr.Murtaugh has had stints in Chrysler and SAIC Motor Group.
A glorious past
The successful introduction of the Buick brand to China in 1998 is mainly attributed to Mr. Murtaugh. Following that Buick has gone from strength to strength in the world’s biggest passenger cars market.
He is looking to leverage such experiences to pilot Qoros on the success trajectory. According to Murtaugh, Qoros failed to draw customers to its showrooms, which translated to poor sales. This pattern was mainly attributed to inconvenient dealer locations.
Murtaugh plans to ramp up the number of dealers to 150 from the present 78. Also, he was seeking financially strong dealers strategically placed in high-traffic auto-shopping areas.
He holds the view that Quiros’s costs needs to be trimmed to make it competitive. Only time will tell whether Murtaugh’s ambition for Qoros takes shape.
