GM consolidates top spot in China auto market

[Flybrian]

Link to full story at Yahoo! News/Reuters

GM consolidates top spot in China auto market

Chinese workers work at a production line at the General Motors Corp.'s new plant in Shanghai, May 28, 2005. General Motors Corp., the world's largest auto maker, said on Tuesday its sales in China rose 47 percent in the first half of 2006, as it benefited from a stronger-than-expected domestic market. (China Newsphoto/Reuters)

SHANGHAI (Reuters) - General Motors (NYSE:GM - news), the world's largest auto maker, consolidated its position as China's top vehicle seller in the first half of 2006, as booming demand helped the domestic market post healthy gains all around.

GM, which overtook Germany's Volkswagen AG (VOWG.DE) last year to become China's biggest vehicle seller, sold 453,832 units in the six months ended in June, up 47 percent from a year earlier, the company said on Tuesday.

It pegged its market share for the period at 12.5 percent, up from 10.8 percent a year earlier.

Volkswagen posted healthy but significantly slower growth of 30.2 percent for the period, as sales rose to 345,375 vehicles.

China has yet to release national vehicle sales for the first six months of the year. But vehicle sales rose 30.84 percent to 2.97 million units in the first five months of the year, with car sales up 44.2 percent to 2.11 million units.

The strong industry-wide gains come on the heels of 21.4 percent growth in car sales for China last year, and just 15 percent growth in 2004 as Beijing took steps to rein in credit and cool the nation's racing economy.

"GM and our China operations benefited from a stronger-than-expected domestic vehicle market in the first half," Kevin Wale, president of GM China Group, said in a statement.

"We expect vehicle sales in China to remain steady through the end of 2006 and top last year's record. GM and our joint ventures are on track to once again outpace the market, with annual sales growth of more than 20 percent."

GM, whose brands include Buick, Chevrolet and Cadillac, said sales for its China joint venture with Shanghai Automotive Industry Corp. Group (SAIC), China's most profitable auto maker, rose 49.1 percent in the first half to 201,901 units.

Volkswagen, whose brands include Audi and Volkswagen and which also has a joint venture with SAIC, also credited new models for its own strong gains in the first half of the year.

"The increase in sales is the direct result of Volkswagen Group's restructuring strategy, the 'Olympic Program'," Winfried Vahland, president of Volkswagen Group China, said in a statement.

"The program includes the introduction of new tailor-made models like the Passat Lingyu and the Sagitar."

On Monday, PSA Peugeot Citroen's (PEUP.PA) Chinese venture said its vehicle sales rose 38 percent in the first half to 100,173 units, again crediting the rise to new models.

Other major foreign auto makers in the China market include Toyota Motor Corp. (7203.T), Honda Motor Co. Ltd. (7267.T), DaimlerChrysler A.G. (DCXGn.DE) and Ford (NYSE:F - news).

[Drew Dowdell]

453,832 units in the six months ended in June

How many brands to they sell over there? I know Buick and some Cadillacs are sold there, but what else?

[Flybrian]

How many brands to they sell over there? I know Buick and some Cadillacs are sold there, but what else?

GM China - in English!

Chevy, Buick, SAAB, Cadillac, and Opel.

[Drew Dowdell]

GM China - in Engrish!

Chevy, Buick, SAAB, Cadillac, and Opel.

thanks :AH-HA_wink:

[Clownzilla]

GM China - in English!

Chevy, Buick, SAAB, Cadillac, and Opel.

Don't know why it is not posted on the site, but they have Hummer dealers there too (not many though).

[Newbiewar]

so that means we are up by 140k units in japan?

anyone know if we are up in europe or south america?

[cavalier36]

ive looked at the GM China lineup.. not too bad overall.. i still think we should export some of our north american lineup over there.. for the Chevrolet lineup id send over the HHR , the 2 door Cobalt, and maybe the Equinox.. for Buick id send over a version of the lambda crossover..

[ShadowDog]

WE'RE NUMBER 1 ! WE'RE NUMBER 1 ! WE'RE NUMBER 1 !

...in China...

[FunkyPig]

ive looked at the GM China lineup.. not too bad overall..  i still think we should export some of our north american lineup over there..  for the Chevrolet lineup id send over the HHR , the 2 door Cobalt, and maybe the Equinox..  for Buick id send over a version of the lambda crossover..

The problem is the tarrifs on imported cars in China mean any car that aims to sell well has to be assembled in China or it will be very expensive.

[Clownzilla]

The problem is the tarrifs on imported cars in China mean any car that aims to sell well has to be assembled in China or it will be very expensive.

Very true. Even though they have to be built over there, GM needs to make sure to export American style so Toyota won't end up being the "cool" vehicle over there. A VERY low end version of the HHR would be a hit over there! Have quality, but just don't put all the bells and wistles in. The more Chinese people that can get into one of those (or vehicles like that), the brighter GM's future will be over there.

Edited July 7, 2006 by Clownzilla

[cavalier36]

I belive if a country puts a tarriff on imported cars we should charge the same amount of tariffs on cars they import here.. thats the whole problem with the u.s auto industry.. other than canada and mexico we cant export any U.S. built cars anywhere without a large tariff slapped on it.. but every dang counrty in the world can dump all their cars over here for a small tariff.. something is seriously wrong with this picture.. id slap a 20% tariff on EVERY imported car sold in the u.s.a.. i dont care if GM or Ford builds that car.. if its not built in north america we need to raise the tariff..

[Clownzilla]

I belive if a country puts a tarriff on imported cars we should charge the same amount of tariffs on cars they import here.. thats the whole problem with the u.s auto industry.. other than canada and mexico we cant export any U.S. built cars anywhere without a large tariff slapped on it.. but every dang counrty in the world can dump all their cars over here for a small tariff.. something is seriously wrong with this picture.. id slap a 20% tariff on EVERY imported car sold in the u.s.a..  i dont care if GM or Ford builds that car.. if its not built in north america we need to raise the tariff..

163773[/snapback]

I would not say every country (just the offenders), I do beleive that we should tack on a tarriff equal to the tariff of the exporting country. This should only be for companies who are based outside the USA. Unfortunatily, GM can't build vehicles here much longer, but it would not do any good if you tariff a GM built in another country.

[zhawk]

I belive if a country puts a tarriff on imported cars we should charge the same amount of tariffs on cars they import here.. thats the whole problem with the u.s auto industry.. other than canada and mexico we cant export any U.S. built cars anywhere without a large tariff slapped on it.. but every dang counrty in the world can dump all their cars over here for a small tariff.. something is seriously wrong with this picture.. id slap a 20% tariff on EVERY imported car sold in the u.s.a..  i dont care if GM or Ford builds that car.. if its not built in north america we need to raise the tariff..

163773[/snapback]

That sounds very much like what Jack Ryan put forth in Tom Clancy's 'Executive Orders'