Three-cylinder gasoline engines are cleaner and more fuel
efficient than their conventional four-cylinder counterparts,
and automakers are keen to promote them, particularly in China
which has some of the world's most stringent fuel economy and
emission rules.
GM went further than competitors, discontinuing four-cylinder
versions for many models in the world's largest auto market. By
comparison, Honda Motor Co <7267.T> and BMW <BMWG.DE> also offer
three-cylinder cars in China but the models are an option in
addition to four-cylinder versions.
Many Chinese consumers, however, perceive cars with
three-cylinder engines as noisier and prone to vibrating, and
sales began to tumble in third quarter of 2018. Last year, GM's
China sales fell 15% to 3.09 million vehicles, its second
straight year of steep declines and the lowest level since 2012.
The move was "too quick, too radical and lacked sophisticated
planning," a senior Shanghai-based sales manager at a Buick
dealership told Reuters.
The sales manager, who was not authorized to speak to media and
declined to be identified, said his company was among hundreds
of dealers which lobbied GM to change the plan at dealer
conferences.
By resurrecting four-cylinder options for key models, the hope
is that GM, which reports fourth-quarter earnings later on
Wednesday, can regain some of the ground it has lost at a time
when the new coronavirus is threatening to sink sales in the
first quarter.
The outbreak is only adding to pain caused by to a slowing
economy, U.S.-China trade tensions, new emission rules as well
as fierce competition from Toyota Motor Corp <7203.T> and
Volkswagen AG <VOWG_p.DE>.
SAIC-GM, the Detroit automaker's main venture with SAIC Motor
<600104.SS>, is seeking approval for four cylinder versions of
two mass-market sedans, Buick's Excelle GT and Chevrolet's Cruze,
government documents show.
Those two versions are slated to hit the market sometime in the
second quarter, two people with knowledge of the matter said,
adding that four-cylinder versions of the Buick Verano sedan and
Encore GX sport utility vehicle were also under consideration.
A Shanghai-based GM spokeswoman said the automaker will continue
to offer three- and four-cylinder engines in the future but
declined to comment on product plans.
(Reporting by Yilei Sun and Norihiko Shirouzu in Beijing;
Editing by Edwina Gibbs)
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