Buick unveils new forces

Author | Chai Xuchen

Editor | Wang Xiaojun

"In the past period, we have not been in the most core position of discourse power. Companies sometimes go through ups and downs just like life."

In an interview after the launch of the Buick Aito L7, Xue Haitao, Deputy General Manager of SAIC-GM, said this. This frankness is both a summary of Buick's past three years and a sign that a long-planned counterattack is truly beginning.

On September 15, Buick officially launched the Aito L7, a new car positioned as a mid-to-large sedan. Interestingly, before the launch, Buick paid tribute to several domestic new force brands, which had a somewhat combative tone.

The Aito L7, a C-class sedan with high expectations, made a grand entrance equipped with lidar, Momenta R6 flywheel large model, Qualcomm 8775 chip, and a "super range extender" system, targeting the fiercely competitive market segment of 200,000-300,000 yuan. It urgently wants to shed the label of "mismatched electric vehicle" for joint venture brands and provide a model for the transformation of the entire joint venture camp.

In the past, joint venture brands have repeatedly encountered setbacks in their electrification transformation, primarily due to the lack of product definition rights and core technologies. Many so-called "oil-to-electric" products merely stuffed batteries and motors into the shells of fuel vehicles, lacking the support of a native electric platform, let alone competing with new forces in terms of intelligent experience.

Xue Haitao bluntly stated: "In the past, the leading development rights of many of our products were not in Pan-Asia. When we were promoting electric vehicles before, it felt like something was missing without intelligence; the products we sent out had no voice." The arrival of the Aito L7 marks a complete subversion of this model—it is entirely developed from scratch by the Pan-Asia Automotive Technology Center's "Xiaoyao" architecture.

With its own architecture, the Aito L7 can precisely address market pain points in terms of product strength. It chose "super range extender" as the breakthrough point for entering the C-class sedan market. In the SUV market, range extender technology has become mainstream, but there is still a gap in the sedan market. Buick hopes to fill this gap with a meticulously crafted range extender system.

If the super range extender solves users' "range anxiety," then the intelligent configuration is the "killer feature" for the Aito L7 to face competition from new forces. This time, Buick has presented a highly sincere technical combination. In terms of intelligent driving, the Aito L7 debuted the R6 flywheel large model in collaboration with Momenta.

It can be said that the Aito L7 is the clarion call for this old American car company to counterattack in the era of new energy. What it reflects is a comprehensive transformation from product definition, technology research and development to organizational structure and joint venture model. The American side has shifted from initial skepticism to now fully trusting the Chinese team, even using Pan-Asia's execution efficiency as an internal case for promoting change, which itself indicates the depth and effectiveness of the transformation.

Of course, challenges remain ahead. The 200,000-300,000 yuan market is already a red ocean, and there is controversy over whether the range extender route is the final form technically. But as Zeng Yu, Executive Deputy General Manager of the Pan-Asia Automotive Technology Center, said, Buick is seeking the best balance for users in the face of market noise under current technical conditions The following is a dialogue between Wall Street Journal and Xue Haitao, Deputy General Manager of SAIC-GM, Wang Chendong, and Zeng Yu, Executive Deputy General Manager of Pan Asia Automotive Technology Center (edited):

Q: The transformation of joint venture brands is a very difficult and painful process. What insights and experiences can SAIC-GM bring to the industry?

Xue Haitao: For a period of time, we were not in the most central position of discourse power. Sometimes, a company is just like life; there are no smooth sailing experiences, and everyone has to go through ups and downs. I remember when I first joined last year, I told the team that encountering difficulties is not scary; the most important thing is to have a united front. Secondly, everyone should be able to speak out about any issues. As long as we can stand up again, I believe we have succeeded.

During the transformation process, we encountered many challenges. The first challenge was product-related. Many of our products were not primarily developed by Pan Asia. Over the past three years, Buick has experienced its lowest point in development, and we began to recognize the gap between us and our competitors. Recently, we released the teaser poster for the Buick Zhijing L7, the "Tribute" series, which actually represents our thoughts—paying tribute to industry peers. If they can do well, it shows that we are facing the gap on certain levels.

But why do we say that today marks the arrival of a new era for Buick? First, on the product level, we have developed the million-level Xiaoyao architecture, which is entirely self-developed by Pan Asia and supports front-wheel drive, rear-wheel drive, all-wheel drive, range-extended, plug-in hybrid, and pure electric drive forms. In fact, Pan Asia is the "Huangpu Military Academy" of the entire Chinese automotive R&D community, and we can fully trust Pan Asia's strength in this regard. The Guangde test track was also the largest test track in Asia back in the day. There are not many companies in China that can have such a test track now, and even mainstream new forces are conducting tests at the Guangde test track. A large number of these deep R&D systems have provided us with an opportunity for a turnaround.

At the same time, we have also made qualitative breakthroughs in intelligence, including our cooperation with Momenta. The smart cockpit uses the latest Qualcomm 8775 chip, and we are starting to create competitively marketable products.

Secondly, it is the communication and cooperation between the two joint venture parties. Last month, we held a very successful board meeting in the United States, where I gave a report on the changes in China. Everyone was surprised to see that China is like this. Now, General Motors in the U.S. is doing very well, with market share approaching 18%, and all models are selling well, which is completely different from the competitive atmosphere in China. This time, our communication was more about "integrating wisdom"—to reach a consensus. The cooperation between both parties is now very good, and this year, SAIC-GM's overall performance, whether in sales or profits, has begun to see significant improvements, which is an important foundation for building trust between both parties.

Zeng Yu: Why were we able to quickly push our desired Xiaoyao architecture and Zhijing L7 to market? In fact, it was due to a lot of groundwork done previously, such as the development of our range-extended system and electronic architecture. As for the shift towards intelligence, our central computing unit is now completely self-developed. It is precisely because we have these self-developed architectures as a foundation that we can create such a good product The more core issue is that both China and the United States can recognize this point. Originally, they were also confused, asking why I wouldn't use their products and insisted on developing my own. But what I want to say is that your product may not be suitable for China; it cannot fully meet the needs of Chinese customers, and we need to make many improvements tailored to the needs of Chinese customers. Currently, everyone has reached a very good consensus. For the Buick brand, we are fully empowered to create, self-define, and develop products that truly suit our Chinese market.

Q: Will the arrival of Aito lead to a reshuffling of the new energy market and bring about a new atmosphere?

Xue Haitao: Over the past few years, luxury brands and joint venture brands have faced significant impacts. When we were promoting electric vehicles in the past, it felt like something was missing without intelligence; the products we sent out had no sound. After a certain level of market education, intelligence has become fully integrated with new energy when choosing electric vehicles, turning into a necessity. Consumers ultimately judge whether you are a generic brand based on your product.

This time, regarding range extension, we are actually the first in the industry to do so. We started promoting range extension in 2010 and 2017, at a time when China did not yet have a culture or market system for new energy. Now, range-extended vehicles have become mainstream in the SUV market, with sales of 10,000 to 20,000 units mostly being range-extended vehicles. Why has there not been a range-extended vehicle in the sedan market? We hope to fill this gap.

The engine is a strength of Pan-Asia. This time we are using a 1.5T Avatar engine that has won the "Top Ten Engines in China" award. This engine is specially developed for range extension, matched with our Ultra Energy battery and the strongest single electric drive for range extension, perfectly solving the industry's pain points of "acceleration issues when running out of power and loud noise when the range extender and engine start."

Another very important point is assisted driving. We have been cooperating with Momenta for quite a long time, and the first product launched is the Aito L7, which debuted the R6 flywheel large model. Today, we demonstrated automatic parking on-site, and everyone has already witnessed it. When we really need to compete on product strength, we must bring it out to compete hard.

Q: What are the internal expectations for the Aito L7?

Xue Haitao: In the price range of 200,000 to 300,000 yuan, I actually hope to truly enter the customer's car purchase shortlist. Because customers no longer need to struggle between electric or gasoline; they can enjoy the advantages of both through the range extension system. On one hand, most gasoline vehicle platforms have not yet transitioned to a truly new intelligent platform, and for electric vehicles, some people may have range anxiety issues. I cannot give everyone a real target situation right now; we should assess the market situation over the next two weeks. On September 28, I will announce my small target.

Q: There is a core discussion about super range extension now: is super range extension the ultimate form of range extension, and how does it balance with the cost and weight of pure electric? Zeng Yu: I have always believed that pure electric, range-extended, and plug-in hybrid routes all have their merits. From a technical standpoint, range extension and pure electric are closer and have common development paths. The so-called super range extender may involve paying a bit more for the battery. Why are new energy vehicles generally larger than traditional cars? The reason is that everyone needs to accommodate a large battery, which naturally makes them larger than pure gasoline vehicles. In this context, the size difference among vehicles is already very small, which is a dimension of size. From the perspective of the ratio of electricity to fuel, increasing the proportion of electricity will inevitably reduce the proportion of fuel, which will affect my overall range cost. This is where everyone seeks a better balance point.

I do not believe there is a standard answer, but I think this is a question worth discussing. This also explains why the Zhijing L7 made such a choice, possibly due to some genes from Buick, allowing us to ensure that each aspect is not weak.

We will also test to see the final preferences of customers. For example, if customers are very concerned about pure electric range and are even willing to give up some other features for it, I think that is acceptable.

Xue Haitao: From the perspective of sedans, many people ask me why we chose to make a sedan first. If I had started with an SUV, there would have been many competitors ahead. Now, by making a sedan, we are providing all customers with a third choice in this market segment.

We discussed internally for a long time and chose the largest single electric drive in the range-extended category, with strong power, because we believe that a key part of luxury cars is strong power, not only when fully charged but also when the battery is low. Secondly, the overall fuel consumption must be low. Another important point is that we have not compromised on luxury and comfort. In the process of defining this product, we provide users with both static and dynamic luxury and comfort.

When we discussed the target demographic internally, I envisioned a group of people who want to purchase a car at important stages of their lives, not purely from a personal perspective. We raised many scenarios internally, one being when you are getting married; you are no longer alone and need to consider your partner. When you start having children, these considerations are not purely from an individual standpoint. I believe this should be a very primary vehicle for the family, capable of using electricity for short trips and fuel for long trips, ensuring that every seat comfortably accommodates the entire family. I think this is the original intention of our car.

Zeng Yu: Earlier, we mentioned driving experience, ride comfort, and operational stability. Here, I can responsibly say that we have achieved top-level standards in the same category.

Question: What is the story behind SAIC-GM's collaboration with Momenta?

Wang Chendong: At the beginning of the press conference, we paid tribute to many competitors. In fact, without the emergence of these competing products, it would have been difficult for us to define the entire vehicle product, including our architecture, drive systems, and intelligence, and to bring the entire R&D chain to China for our own development. We have collaborated and discussed with Momenta for a long time; last time we mentioned that we have worked together for four years. Now that we have reached Zhijing, there is a strong opportunity for explosive growth because we already have a solid local self-developed Xiaoyao architecture to support it, launching "Xiaoyao Zhixing." Second, why did Momenta collaborate with us to launch the R6 flywheel large model? There are actually several reasons: First, General Motors and SAIC Group are both major investors in Momenta, so Momenta must fully support our company in launching the latest products. Second, there is a concept that aligns very well between both parties; General Motors' definition of safety resonates with Momenta's safety products, and both sides hit it off immediately.

In this process, we focus on product safety, functional safety, and the entire vehicle system, not just the perception and control systems of the intelligent cockpit, but also the chassis and steering on the vehicle side. Momenta has also recognized our deep automotive manufacturing foundation in this area. With our partnership with Pan Asia, General Motors' years of accumulation in chassis capabilities are also at our disposal. They hope to put the best products on our most reliable vehicle, which is why we ultimately decided that the R6 large model would be our first launch. We hope that once it is launched, we can truly deliver the best product to users on the best vehicle, making a significant impact.

Today, we have initially used the R6 flywheel large model, and in a few months, our competitors will likely use it as well, which is very normal. However, at that time, Momenta hoped to have a truly reliable partner to implement it first.

Regarding the difficulties encountered in the collaboration on the R6 system, as a new entity, it is bound to face challenges. After all, its capabilities are several times greater than those of the original R5, with some areas even seeing improvements of over ten times. For us, there are many aspects of vehicle control and safety systems where we are also helping Momenta define this. Ultimately, the assisted driving product is not just a simple software output and control output; it must match well with the vehicle because the goal is to provide users with a sense of safety and a smooth driving experience.

From the above points, this is also why we were the first to launch the R6 large model.

Q: What considerations led to the price range of 200,000 to 300,000 for the Zhijing L7?

Xue Haitao: If you ask the sales team, they would definitely hope that the cheaper the product, the better the sales. However, if everyone only considers reducing costs to make a base model vehicle, I believe it would be detrimental to the brand in the long run. When we launched the Zhijing brand in April, we aimed to create a high-end new energy sub-brand, with the intention of providing consumers with better products. For a brand like Buick, which has a century-long history and rich experience in vehicle manufacturing, Pan Asia is one of the earliest R&D centers in China, and the R&D team is very strong. In this new era, as long as we address our original shortcomings, I believe we have the capability to compete with others, which is the original intention behind the development of the Zhijing L7.

Q: Today, there are six words that I find very powerful: "Big Buick is back." What do these three words mean?

Xue Haitao: "Big Buick" is something our internal team specifically wants to emphasize. In the past, starting from the Regal, including the LaCrosse and the New Century, we have established an impression of being large and stable for all consumers. "Big Buick" is not something we say; it is actually feedback from users in the entire market. This is an important recognition formed over more than 20 years of accumulation This time, the Zhijing L7 also hopes to give everyone this feeling, but the "Buick" of this era is fundamentally different from the past "Buick" in terms of products. We have adapted to this market and this era to launch the "Buick."

Q: The range extender market has shown some signs of contraction. How does the internal team view this backdrop?

Xue Haitao: For a good product and good technology, we still need to return to user needs and whether users have such pain points. Currently, many small electric vehicles are being produced in the pure electric market, and many people treat them as urban commuting vehicles. However, our vehicle is more inclined to be a primary family vehicle; it can meet your urban travel needs and also satisfy your long-distance travel. If we choose to develop a top-level range extender system, I believe it can fully meet the needs of a family as a primary vehicle. This is my judgment, and I view this matter from the perspective of a normal consumer group.

Zeng Yu: I would like to add from a technical perspective that the essence of this matter still lies in whether the energy density of batteries can be improved to a certain height. If it can truly be improved to a certain height, then indeed, there is no need for range extenders, as pure electric vehicles can cover all usage scenarios. However, we need to look at whether there are opportunities in the current technological development. No matter how large the battery capacity, even if the chemical formula uses ternary lithium, I believe that vehicles cannot get any "larger." The largest battery is around 130 kWh of ternary lithium, which is already the size of an MPV. If it gets any larger, it may not be able to accommodate the size of this battery, which would render it practically useless.

Due to the uniqueness of our country, the north is extremely cold, the south is extremely hot, there are many people in the central region, and very few in the west. The distances between cities are particularly large. This kind of disparity leads to a very large demand from Chinese customers, each with their own needs. I have always believed that range extender vehicles still have space for existence at this point in time.

Q: Has the board set any bottom lines for Buick's brand positioning and product planning in China, as well as for technology openness?

Wang Chendong: This time, the keyword for the North American board's attitude towards us is "trust." They have a lot of trust in our entire strategy and products for China. They have also seen our Zhijing; the last board meeting was more of a blueprint, and the vehicle had not yet taken shape. This time, they have seen the entire product and many data points. Now, the Zhijing L7 is just the first vehicle, and in the future, not only will there be more product definitions for Zhijing and the Buick brand, but also for Cadillac, with more products coming to China.

Of course, GM has its principles, as brand consistency is very important to them. After all, they are a global company and need to have brand genes. There are some good brand genes; as just mentioned, "Buick," and Buick and Cadillac also have global brand genes. How to further integrate this with the Chinese definition is crucial for them. As long as they achieve this, they can trust the entire Chinese market. For GM, there are also many other global markets, some of which design and manufacture their own vehicles. They also need some of our good intelligent technologies, and some even take entire vehicles over. The expression of "trust" in this instance is very clear Zeng Yu: It may have been because some of our planned products were not visible to them before. By July of this year, these products gradually took shape, and we also quickly released some of our past products, such as the GL8's new energy vehicle. This had a significant impact on them, not just on GM's management team; they even used our execution as a case study to push all of GM's engineering execution teams. Why can Pan-Asia do it, but you cannot? Why can they achieve results in such a short time, while you cannot? Instead, it has become a case they use to drive other market design teams. This has actually given GM's management a lot of confidence