GM expects sales in China to grow 20% in 2009
General Motors boasted in April that it would double sales in China by 2013 with the introduction of 30 new or upgraded models over the next five years. Last month, GM forecasted that its vehicle sales in China would grow 10% this year alone and now it seems those numbers may have been a bit conservative. Kevin Wale, GM's China Group President, has just announced that the company expects vehicle sales in the region to grow by a little more than 20% in 2009.
While the rest of the global automotive industry is stuck in a rut, the emerging Chinese market seems largely unaffected by stagnant North American sales or GM's bankruptcy filing in early June. As of now, China is the company's second largest market (thanks in part to their insatiable appetite for Buicks).
[Source: Automotive News - Sub. Req.]
Reader Comments (Page 1 of 1)
Avinash machado 10:10AM (7/10/2009)
This is probably the number one reason for keeping the Buick brand.
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joe23521 10:20AM (7/10/2009)
It was likely the only reason.
tankd0g 10:19AM (7/10/2009)
Maybe GM should build a bunch of new plants, keep cranking out ever more variants of every model and party like the growth trend is sustainable for the next 100 years. What could go wrong?
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airswingman 10:22AM (7/10/2009)
The only hope GM has,
"GM is spending 5 billions $ on new plants in China and the huge design studio
but the only investment in the state is arround 500 million $ on small car plant in Michigan in next couple years."
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Mr.Oak 11:17AM (7/10/2009)
Could it be that GM already has most of the plants that it needs in the US already up and running?
airswingman 11:26AM (7/10/2009)
GM is closing plants,right? for now the us doesnt need that much i guess
GM is losing what theyrhaving
Aznauto 11:01AM (7/10/2009)
They wasted that 500 million better off opening that plant in China, even though GM is doing right thing putting all its focus on worlds largest automotive market.
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zamafir 11:14AM (7/10/2009)
GM's expecting sales growth of 20% in China? Isn't EVERY automaker expecting double digit sales growth in China? VW was already up 6% in the first quarter of this year.
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alex 11:30AM (7/10/2009)
You made a point and then discredited it yourself... The 6% growth you say VW has seen is clearly not double digit growth.
zamafir 11:43AM (7/10/2009)
@ alex - I'm not sure if you actually read my post or are just feeling cantankerous so i'll quote it for you:
'VW was already up 6% in the first quarter of this year."
That's 6% in Q1, the first quarter. Quarters containing four parts, which combined will give us the growth for the entirety of 2009. FAW-VW sales were already up 21% for the year as of this week, though I'm still waiting for VW's press release and not Chinese media. Which is why i quoted the 6%, for the first quarter.
It might be time for you to get some coffee.
alex 11:56AM (7/10/2009)
I'm assuming you mean that sales from Q1 2009 are 6% higher than Q1 2008. If they keep up that same pace (Q2 2009 up 6% over Q2 2008, Q3 2009 up 6% over Q3 2008, Q4 2009 up 6% over Q4 2008), that will equal.... 6% annual growth.
zamafir 12:24PM (7/10/2009)
@ alex - I'm not sure if you actually read my post or are just feeling cantankerous so i'll quote it for you:
"FAW-VW sales were already up 21% for the year as of this week, though I'm still waiting for VW's press release and not Chinese media. Which is why i quoted the 6%, for the first quarter. "
I see no reference to future quarters sustaining the exact same growth with no increase. I do read that we're already seeing reports that VW has already eclipsed 20% as of this month for the year.
Go get that coffee!
Richard S. 12:20PM (7/10/2009)
With every major automaker, plus domestic Chinese automakers, ramping up production, all looking "for double digit growth", how long before an overcapacity of cars is created in China, major discounting begins and profit margins begin to tank?
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zamafir 12:26PM (7/10/2009)
Years and possibly decades, the demand is insane and will be, especially with little to no CAFE/EPA crap over there.
Richard S. 12:30PM (7/10/2009)
While China has no CAFE/EPA, they do want to reduce their reliance on foreign oil and when the Chinese Communist Party decides on a plan it gets implemented rather quickly (see how fast their stimulus plan is working versus ours).
China is already looking to expand the appeal of hybrids and fuel efficient cars through taxation.
the4thheat 2:16AM (7/12/2009)
Little to no CAFE to EPA crap? They have emissions rules there too you know. Including the kind where you can only drive your car on certain days because the smog is so bad.
I think that might qualify as being a wee bit more restrictive than requiring a catalytic converter.