Guangzhou Automobile Group (GAC), a long-time manufacturing partner of Toyota and Honda in China, has hired a veteran marketing executive from BMW as the chief operating officer of its overseas business unit, as it seeks to accelerate growth in Europe and beyond.
Why it matters: Making the announcement at this year’s Paris Motor Show on Monday, GAC joins an array of Chinese automakers tapping Europe amid ever-intensifying competition at home and following the imposition of nearly 40% tariffs on Chinese EVs by the European Commission.
READ MORE: EU anti-subsidy EV probe: What Chinese automakers have done in Europe and what’s next
Details: Thomas Schemera, a longtime executive at BMW and Hyundai, will join GAC International, the overseas business subsidiary of the state-owned automaker, as the global chief operating officer and senior vice president. GAC aims to establish positive consumer resonance in the European market with this move and inject new impetus into the company’s global development, according to a Chinese statement.
- German-born Schemera held various roles at BMW over three decades. He started his career at the German carmaker in the late 1980s as an engineer of computer-aided manufacturing and briefly led the development of sales and dealerships for the manufacturer in China between 2005 and 2008, according to his LinkedIn profile.
- After his departure from BMW, he served as global chief marketing officer and executive vice president at Hyundai from 2021 to 2023, a role that included bolstering communication of Hyundai’s N brand and its dedicated battery electric vehicle lineup IONIQ, according to a Hyundai announcement.
- GAC will begin sales of a sports utility vehicle, Aion V, in several European markets in mid-2025. It has a driving range of 520 kilometers (323 miles) per charge and will be priced at no more than €40,000 ($43,748). To compare, a Tesla Model Y starts at €42,900 with a driving range of 244 miles in Germany.
- Meanwhile, the Chinese automaker is looking at the possibility of making EVs locally to avoid EU tariffs, an executive told Reuters. Still, speaking to Chinese media outlet Caixin on Tuesday, Feng Xingya, the general manager of GAC, explained that the company’s pursuit of local production would be premised on strong demand.
- GAC’s developments show its serious intention to dig deep roots in Europe, expanding its dealership and service networks with a timeline to sell cars and provide maintenance repair all over the continent in 2028. A transit warehouse for Europe will come into service next year to ensure a more timely supply of car components.
Context: GAC is among several Chinese automakers to steal the show in Paris with debuts of their price-competitive and technology-advanced EVs, and announcements displaying a continued ambition to crack the market despite rising protectionism.
- Stellantis-backed Leapmotor showcased its B10 compact SUV, a global model designed for tech-savvy consumers with assisted driving and infotainment functions powered by Qualcomm’s latest processors. It began taking reservations for a budget EV and a large SUV at sticker prices of €18,900 and €36,400 last month.
- At a press conference during the show, Xpeng Motors announced the pre-sale price for its P7+ sports sedan starts at RMB 209,800 ($29,493) in China. Meanwhile, BYD and Huawei-backed Seres showcased their newest models – the Yangwang U8, and the Aito M7, – respectively.
- Chinese EV imports will face additional duties in the 17-35.3% range on top of an existing 10% levy likely starting from November. Beijing is still pushing for negotiations on alternative solutions, while Brussels is poised to publish tariff implementation regulations by Oct. 30.
READ MORE: Chinese carmakers to become dominant globally despite tariffs – AlixPartners
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