Global automakers unveil local China brands

SHANGHAI -- Some of the new Chinese cars unveiled at this week's Shanghai Auto Show are affordable for millions of buyers -- a happy development for Beijing that might prove costly for the global automakers producing them.

General Motors Co. unveiled the 630 sedan, the first model from its new Baojun badge developed with Chinese joint venture partners. The four-door will have a sticker price of $10,700 to $15,300.

Honda Motor Co. displayed the plain, compact four-door S1 at the auto show, the first from its new Everus line that went on sale this week. Nissan Motor Co. showed off an unnamed car it plans to sell under the Venucia brand next year.

These so-called "indigenous" brands will only be sold in China and their prices are aimed at a segment of the market that is already crowded with cars from lesser-known Chinese brands. They'll also be in competition with the foreign automakers' existing entry-level models.

Carmakers say they are introducing the nameplates with their Chinese partners so they can tap growth from China's expanding middle class. But industry watchers say it's a new tactic by China's government, which is unhappy with the failure of state-owned automakers, to gain significant market share for Chinese brands since partnering with foreigners. -- AP