General Motors thru its SAIC GM Wuling joint venture rolls out the first vehicle under the Baojun brand to take advantage of the fast growing demand for compact vehicles in China. The carmaker’s Baojun 630 comes in three trims and will cost $9,750 to around $11,495.

The Baojun 630 aims to address the demand in the 2nd-tier and 3rd-tier cities in China. The sedanwas first unveiled during the 2011 auto show in Shanghai. The Baojun 630 was developed in the automatic center of SAIC-GM which will eventually be improved in order to produce SUVs and MPVs.

The SAIC GM Wuling team up is looking at around 20,000 units of the Baojun 630 this year. The join venture has a goal of adding a new car model each year to be marketed under the Baojun brand. Baojun means “treasure horse” in Chinese. It also aims to get a big chunk of the market for compact and subcompact vehicles through 2016.

The Baojun 630 is a well positioned vehicle in the market covering the segment of those who can afford cars priced between $10,00 to $12,000 which is considered with the largest potential in the booming economy of China.

Baojun dealerships have mushroomed in eight cities across China including those in Najing, Changsha, Zhengzhou, Jinan, and Shijazhuang. By end of 2011, the brand is expected to have 150 showrooms to cover more cities.

GM is among the car giants which formed a joint venture with local Chinese car manufacturers to take advantage of the demand for budget cars in the second tier metros of China which are dominated by local brands like Chery and Geely.

If you have been paying attention to the news lately, then you probably know that GM last year was down the toilet and they actually had to take out a loan from the U.S government.  Well, I can tell you for sure that, that loan was just that a … loan and the government is expecting payment and GM is coming through!

Payments are being made constantly and with the first quarter of the year coming to a close, GM is paying $192 million to Canada and of course one billion back to the United States.  Another installment should be given on March 31st as well.

Personally, I think that GM is doing something good right now. They are getting things done and making up for their debts.