FYI 10.28.2009

GM Denies it Plans to Export Low-cost Products Made in China to the U.S; Tudou Will Invest $14.6M in Content Development; Pfizer Appoints Ruder Finn

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General Motors Co. doesn't plan to export the low-cost products it develops in China with its local joint venture partners to the U.S., according to Nick Reilly, GM's president of international operations.

During a recent visit to Shanghai, Mr. Reilly gave two reasons why GM cannot export from China to the U.S. "One is we have product here that is useful in emerging markets rather than in the U.S.," he said.

The other reason is that GM has capacity in the U.S. for any vehicle that might be made in China. "And in fact the latest new entry for the U.S., which going to be a small car, is going to be built in the U.S.," he said. He didn't specify which small car he was referring to.

Mr. Reilly added that GM's international operations in Shanghai will provide leverage for other markets. "So yes, in the future Shanghai will become more significant as a developer of products that can be used not only in China, but also in the other parts of the world that require similar products."

A Chevrolet-badged small car, the new Sail, will be launched by Shanghai General Motors Co. in February 2010. Mainly developed by the Pan Asia Technical Automotive Center (PATAC), the car will sold in China as well as other emerging markets. Located in Shanghai, PATAC is jointly run by GM and Shanghai Automotive Industry Corp. (SAIC).

"We have seen how there are similar requirements in other parts of the world for products that PATAC...and also SGM-Wuling [are] involved with," Mr. Reilly said, referring to SAIC-GM-Wuling Automobile Co., GM's joint venture in southwest China's Guangxi region.

In mid-2008, GM started re-badging some of the joint venture's vans for export to Latin America, the Middle East and Africa under the Chevrolet brand.

Mr. Reilly also said he believes China will likely become a world leader in developing small electric vehicles thanks to strong demand in Chinese cities as well as government support for the technology.
--by Yang Jian, the managing editor of Automotive News China
The Chinese online video-sharing site,, said it plans to invest $14.6 million expanding its content offerings within the coming year. The Shanghai-based firm also said it will produce more Tudou-branded and "made for internet" digital video programming.

A Tudou spokeswoman said the company hopes the investment will help the company fend off rivals in China's competitive internet market and break even by 2010.

"Content is king," said Gary Wang, Tudou's founder and CEO, "and 2010 will be a critical year for the online video category to prove its media position and financial model worldwide."

The additional funds will be allocated to buying and producing content. On the production side, Tudou has spearheaded original productions like "Tudou Angels," a collaboration with Shanghai Media Group (SMG) and "Internet Millionaires," a joint-venture with Nokia Corp.

Tudou says it also plans to aggressively expand its relationships with copyright owners through acquisition, revenue share sharing , or co-productions to add copyrighted content. It already works with companies such as SMG, China Film Group Corp., Emperor Entertainment Group, Hong Kong's Television Broadcasts (TVB), Beijing TV, Hunan TV, Zhejiang TV and Jiangsu TV.
Pfizer has hired Ruder Finn to handle communications for a nationwide oncology communications project. The PR firm will help the pharmaceutical company introduce the first large scale research study of breast cancer in China to doctors and patients. The effort includes media relations, corporate branding in the therapeutic area, and reaching opinion leaders.

The appointment, after a six-way pitch that included local and western agencies, is the first Pfizer assignment for Ruder Finn in China. In Asia, the agency works with other health care firms.

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