The auto maker has seen its market share erode in a country where it typically records nearly half of its global unit sales
the pandemic, less than half of the bottom line of $2 billion annually it had grown accustomed to in recent years.
GM has acknowledged one major misstep, shifting to three-cylinder engines from four, which created the impression GM’s vehicles were underpowered.
The company has since brought back four-cylinder options across much of its Chinese range. Last month, Ms. Barra said the additional engine options, together with new electric vehicles, would “really allow us to see improvements.”
In April, GM appointed Julian Blissett as its China chief, succeeding Matt Tsien, who became chief technology officer. GM declined to make any executives available for interviews.
In China’s entry-level market, GM has responded to recent struggles by trying to reposition Baojun as a higher-end brand.
First, Baojun will have to shake off its image with buyers like Hu Junxing, a restaurateur in the southern city of Dongguan. With roughly $12,000 to spend on a new car, Mr. Hu felt there were better options.
“Driving a Baojun would make me lose face,” he said.
Shifting Baojun upmarket leaves Wuling, GM’s other entry-level brand, free to compete in that segment alone, the GM spokeswoman said.
Updating Baojun is “a necessary and important strategic move,” she said, acknowledging that the process would take some time.
Raffaele Huang in Beijing and Mike Colias in Detroit contributed to this article.