Wagoner on GM in China

[Dragon]

http://www.autonet.ca/News/story.cfm?story...06/2253409.html

GM betting on China's growth: Wagoner

by ELAINE KURTENBACH -- Associated Press posted November 6, 2006

 

SHANGHAI, China -- General Motors Corp. intends to keep investing in China's fast-growing market, and it is confident its sales are still outpacing the industry average, GM's chairman Rick Wagoner said Monday.

"We are willing to invest ahead of demand here because we are very bullish that demand is going to keep growing here," Wagoner told reporters after taking a ceremonial spin, with Shanghai Mayor Han Zheng, in GM's hydrogen fuel cell-powered Sequel.

GM's sales jumped 36.7 percent in the first three quarters of this year, helped by strong demand for newly launched models such as the Buick LaCrosse.

Wagoner said GM expects its sales growth in China this year to outpace the industry average of about 20 percent.

China and other overseas factories accounted for more than half of GM's total output of 9.2 million vehicles last year, Wagoner said. The company says its total production will remain at about that level this year.

Monday's event was meant to showcase GM's progress in bringing its newest technology to market, and its willingness to cater to China's appetite for advanced technology as it builds up its auto sector.

Shanghai GM, the company's joint venture with local partner Shanghai Automotive Industrial Corp., plans to begin manufacturing hybrid gas-and-electric powered vehicles by 2008, part of the effort to shift into next-generation technologies that might help reduce the environmental impact of growing vehicle use among the 1.3 billion Chinese.

Ultimately, GM is betting on hydrogen fuel-cell technology such as that used in the Sequel, which looks like a minivan and has a range of 300 miles.

"We believe fuel cell vehicles offer the best long-term solution for meeting the world's growing demand for automobiles in an economically and environmentally sustainable manner," Wagoner said.

"Sequel represents the most production-ready fuel cell vehicle available today," he said. "We've made a lot of progress in making it a real life technology."

Still, the vehicle is far from ready for commercial use, Wagoner acknowledged.

Nearly all the world's major automakers are testing hydrogen-powered vehicles, with some in use by government workers.

The pollution-free technology holds the potential of zero emissions and a sustainable source of energy produced when hydrogen and oxygen are mixed. Experts say they could begin arriving in showrooms by 2020, or perhaps earlier.

But many obstacles exist, including the high cost, relatively short range and a lack of fueling stations.

GM has managed to reduce costs for making the Sequel by 12 times, but still needs to reduce them by seven times more to make it competitive, Wagoner said.

And automakers need help from governments in developing the infrastructure for hydrogen fueling, he said.

"Developing new technologies is really a team sport that requires business and governments to work together," he said. "It's doable, it's not that expensive, but it's going to require some work."

[the_yellow_dart]

Great news - and good to hear the stress on the Sequel as well.

I just learned this weekend that "true" imports - that is, cars not built in China (brand doesn't matter) are subjected to 200% tariffs. Man, that's steep.

So I guess all this GM progress in China will have to be built there. Ah well, it's all good as long as they can find some way to take profits home from it all.

[FAPTurbo]

Great news - and good to hear the stress on the Sequel as well.

I just learned this weekend that "true" imports - that is, cars not built in China (brand doesn't matter) are subjected to 200% tariffs. Man, that's steep.

212574[/snapback]

Level playing field, eh?

[CARBIZ]

In the absence of strong, meaningful enforcement of intellectual property laws over there, I am shocked and amazed at all the Western companies tripping over themselves to commit suicide.

Washington is betting that capitalism will "westernize" China, along the same lines as what happened to Japan. But in truth, it was a war that made Japan see the light - or did they?

Western companies must form partnerships to do business in China. Isn't that convenient for copying technologies and business models? Following the Japanese model, China will simply begin dumping cheaper products on our markets, using our own technology against us.

But, of course, Washington knows what it is doing, right?

[regfootball]

In the absence of strong, meaningful enforcement of intellectual property laws over there, I am shocked and amazed at all the Western companies tripping over themselves to commit suicide.

  Washington is betting that capitalism will "westernize" China, along the same lines as what happened to Japan.  But in truth, it was a war that made Japan see the light - or did they?

  Western companies must form partnerships to do business in China.  Isn't that convenient for copying technologies and business models?  Following the Japanese model, China will simply begin dumping cheaper products on our markets, using our own technology against us.

  But, of course, Washington knows what it is doing, right?

212696[/snapback]

change begins tomorrow...........

[razoredge]

"true" imports - that is, cars not built in China (brand doesn't matter) are subjected to 200% tariffs.

212574[/snapback]

No one ever said the Chinese were stupid...............thats a right reserved for spineless Americans..............but dont worry everythings gonna be alright, just go ask any publicly paid and job secure employee.

Wonder why China cornered the steel market ? and why corporate and political America let it happen

So who holds who hostage ? What exactly is terrorism again ?

Dance my silly little puppets...........dance...........

[FUTURE_OF_GM]

Great news - and good to hear the stress on the Sequel as well.

I just learned this weekend that "true" imports - that is, cars not built in China (brand doesn't matter) are subjected to 200% tariffs. Man, that's steep.

So I guess all this GM progress in China will have to be built there. Ah well, it's all good as long as they can find some way to take profits home from it all.

212574[/snapback]

Yeah... Too bad we're too dumb to do something like that here. Instead we'd rather kill our own industry and call it "Capitalism" and "Better consumerism" Nothing like cutting your own throat and the throat of your neighbors; it's the american way!

[the_yellow_dart]

Yeah... Too bad we're too dumb to do something like that here. Instead we'd rather kill our own industry and call it "Capitalism" and "Better consumerism" Nothing like cutting your own throat and the throat of your neighbors; it's the american way!

212819[/snapback]

Remember though - they make a lot of "imports" in North America. Those would not be tariffed. So, it's not as if the Big 3 would be without competition, if the US were to do the same as the Chinese.