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While domestic sales continue to slide, the auto market in China is thriving. Both General Motors and Ford have reported double-digit sales growth for the first-half of 2008 in the world's most populace country, with GM moving 590,126 Buick, Chevrolet, and Cadillac vehicles for a total sales increase of 12.7 percent, while Ford sold 172,411 units for 21 percent jump in growth. With China recognized as the second-largest vehicle market outside the United States, and with their economy forecasted to grow by at least nine percent this year, automakers in Europe, Japan, and the U.S. are investing heavily to expand sales and production in the Chinese market. It is worth noting that vehicle sales in China have been nearly immune to the increase in global oil prices as governmental controls keep diesel and gasoline prices among the world's lowest.

[Source: Detroit News]



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  • 37 Comments
      • 6 Years Ago
      Wait! Who let positive news about an American automaker on here?
        • 6 Years Ago
        "It's only a matter of time when GM will move all its production to China.

        The health care is public, no strikes in the communist country, low salaries..."

        I'm afraid most U.S. makers will move 50% over there some day.
        The Big 3 does well in countries where there is a level playing field.
        • 6 Years Ago
        ""while simoltaneously understating and brushing aside the failures of import car companies as fluke accidents that couldn't possibly be the fault of the import companies because they're so devine!""

        They are actually spun as positives.

        Remember how the news about Toyota's buyback of thousands of Tacoma Pickups over the rusty frames was spun as "Toyota boldly steps up to the plate to do right by their customers..."

        Makes you sick after a while seeing what the Japanese car makers get away with.

        Can you imagine the shrill din of condemnations by the News Media of Ford or GM if they had a similar problem.
        • 6 Years Ago
        AngeloD
        "
        They are actually spun as positives."

        Very good point!

        2004m3driver
        The overdone negative reporting is well observed by the majority of readers! I'd like to expand but it's beyond the scope of this blog! It's not my imagination! And I'm not being a fanboy! I've driven most makes!
        • 6 Years Ago
        It's only a matter of time when GM will move all its production to China.

        The health care is public, no strikes in the communist country, low salaries...
        • 6 Years Ago
        Don't count out US production yet. The unions and their legacy costs are all but dead, the worthless dollar makes manufacturing in this country an asset, plus there's a good chance we'll see a solution to the healthcare trainwreck within the next 4 years.

        Once we achieve all of these three things you'll see a huge resurgence in American manufacturing that's not limited only to cars.
      • 6 Years Ago
      I think they sell the good Focus and the Mondeo in China. There's your answer right there. We get crap. they get the good stuff.
        • 6 Years Ago
        Yes, Ford just put the new Mondeo on sale in China about 3 months ago. The Euro Focus has been available for a while and at least in Shanghai it's a very hot seller. It looks like they swapped a lot of interior plastics for cheaper Made-in-China stuff to get the price down to a reasonable 120,000-130,000 RMB. I guess that's not so reasonable by US standards though.

        I'd bet money that Ford will release the new Fiesta in the Chinese market before Americans get a chance to buy it.

        Oh, and the Mazda 2 has gone on sale here too, wouldn't it be nice to have that in the USA?!
      • 6 Years Ago
      Is it that true?I live in China but I seldom have seen many Fords and GMs,instead,I see many compact cars such as V W Polo,Honda Civic and toyota...
      • 6 Years Ago
      @ Dude: That asian car you speak of is JAPANESE, not CHINESE
      +2

      @Jvijil: That's just exactly what America needs right now, to nationalize our oil industry D: If that's what you want, go move to a socialist country already.
      • 6 Years Ago
      Duh, lots of pentup demand. With 1.3 billion people who are getting wealthier, car buying is exploding. However as the market matures, we will see smaller growth rates and if everyone competing for a slice of the pie/rice bowl, expect to see casualties and shake-outs.
      • 6 Years Ago
      The only reason they're doing well is because their economy is booming there. Anything sells in China. Here, on the other hand.... we have a crappy economy because we BUY EVERYTHING FROM CHINA.
        • 6 Years Ago
        Says the person with an Asian car avatar
        HotRodzNKustoms
        • 6 Years Ago
        But you have to remember the Chinese don't have a large used car market yet. So they have to buy new.
        • 6 Years Ago
        "...we have a crappy economy because we BUY EVERYTHING FROM CHINA."

        Not only that but the WE, the United States BORROWS money from China (2nd only to Japan)...to the tune of $502bil in US Treasury securities owned by the Chinese (as of April '08)!
      • 6 Years Ago
      I don't think anyone isn't doing well in China.
        • 6 Years Ago
        The Tibetans? The lower lower middle class? Yes I agree they have a very large middle class, but with a third of the worlds population they also have a relatively gigantic impoverish lower class.
        • 6 Years Ago
        There is a difference between doing well and doing the best (as GM is over there) You state that all the time about GM not being class leading therefore the implication is they are not doing well enough. But here GM is doing well enough and should be applauded. With no bias it should be expected that they would do much better than over here.

        The real thing going on here is that Mr. Harley figured he could kill two birds with one stone here. Finally write something good about the domestics but at the same time remind Americans how global these two companies are. The nice GM and Ford symbols around the big old China.

        But GM has relied on and supported and been apart the U.S. (engineering and production) above and beyond the call of duty. Latest technology-wise and such. We are the first to get their two mode (and light) hybrid system and it is produced in Baltimore, MD (and possibly Indiana for the bus version) unlike the Japanese Toyota hybrid system. The Volt is scheduled for production in Michigan along with the 1.0L engine in Flint (which is probably a rare thing for such a small engine to be produced in the U.S. i.e. no Fit or Yaris/Scion engine is made here) I've never pushed the OnStar button and talked to an Indian call center unlike for many U.S. computer companies. Prior to all this two factories produced electric vehicles in the U.S. with GM and not foreign (e.g. Siemens) product (the two factories: Michigan and Louisiana) My guess is that Toyota's best technology at any given time (which in most industries one knows you want to be in the group producing the companies latest technology in order to have a better chance at job security as opposed to the most ancient) is made outside of America.

        At this point, just about every class of vehicle GM sells in America is assembled here. Sky/Solstic, Cobalt (then when that is no longer produced the 40mpg replacement from Lordstown and the Volt in Michigan), Malibu/G6/Aura, CTS, Lucerne/STS, DTS, Colorado, Silverado, Tahoe (still made in Texas IIRC), etcetera.

        The point is that damned if GM hasn't tried to be as American as possible. Americans are the ones turning their backs and forcing GM's hand toward more foreign production in the future. I know, I know, GM is doing such a subpar job of things and they deserve lower sales. I agree that every American has proven to be A+ in everything they do and deserve so much better than anything GM produces. I realize this, who wouldn't. I mean, we're still #1 in everything.



      Jvijil
      • 6 Years Ago
      why can't the US just control gas prices also :(....one of the sacrafices of living in a free country i guess :D
        HotRodzNKustoms
        • 6 Years Ago
        @Jvijil
        Price control is something you can only do in a communist economy. (Certain exceptions permitted in the U.S. to prevent people from starving or being homeless)
        • 6 Years Ago
        @Jvijil
        We pretty much have price control on many farm products (tho, it's on the producer-side of things).

        And India, a democratic and capitalist country (albeit a bit more socialistic) also has price controls on fuel.
        • 6 Years Ago
        @Jvijil
        Yar,

        And I quote, as said by Karl Marx: "Democracy is the road to socialism".
        • 6 Years Ago
        @Jvijil
        There were/are plenty of regulated industries in the US where prices are controlled by the gov't at some level:

        Electricity distribution
        Water
        Natural Gas service
        Waste collection
        Cable TV
        Phones

        And that doesn't include indirect price controls done via taxes and subsidies. Not a true price control but close enough.

        Not that I'm advocating, just saying.
        • 6 Years Ago
        @Jvijil
        HotRodzNKustoms

        That's completely untrue! Respectfully!

        In the U.S.A. tariffs and import taxes can be charged to foreign companies and those monies used to offset the costs of other goods and services! Like it should be! However our President (W. Bush) sees it more fitting to try and give US ports to countries that are harboring terrorists (so says he). Basically we have a moron in power! Once he's gone, these things will brought back, maybe with our privacy as well! (Not that any party is flawless, just sayin folks)

        Just giving you the real deal on that!
        • 6 Years Ago
        @Jvijil
        Typically, fewer regulations will actually result in cheaper prices, not more regulations.

      • 6 Years Ago
      "It is worth noting that vehicle sales in China have been nearly immune to the increase in global oil prices as governmental controls keep diesel and gasoline prices among the world's lowest."

      This statement directly contradicts other reports today that in each month of the second quarter sales growth slowed, although it is still high compared to economies that are already developed. Severe flooding in large parts of the country affecting production and sales may be a temporary blip, but the continuing deflation of their stock market bubble makes people feel less wealthy, just as it did here. And while fuel prices are still subsidized, they were increased by the government for the first time in 18 months, by 17%, reducing the marginal buyer pool further.
        • 6 Years Ago
        Additionally, it's been said that many of the fuel price subsidies will go away(or at least decrease significantly) after the Olympics. They want to keep the people happy and the economy going as well as they can until then. They can't afford to have widespread riots when there will be so many cameras aimed directly at them.

        We may see some changes though after the Olympics conclude.
        • 6 Years Ago
        Better watch what you say about China. They will demand you apologize for insulting their economy.

        Or just block your post and pretend it was never written.
      • 6 Years Ago
      Statistics.Statistics.Car makers are doing well in China despite themselves because the Chinese auto market is exploding.
      • 6 Years Ago
      Autoblog should've said Asia, not just Japan as Korea is one of the biggest automaking exporters in the globe.

      • 6 Years Ago
      I also heard that Hummer sales are up some 30% abroad.
        • 6 Years Ago
        Yes Hummer world wide sales went from 407 to 492 in June 2008.
        Thats 22% increase alright but 22% of nothing adds to nothing.
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