The Cadillac XTS starts at more than $56,000 in China where it is locally produced.
General Motors and its joint ventures sold their 3 millionth vehicle in China last week. This is the first time in GM’s history that it reached that tally in a calendar year. China is by far GM’s largest single market and has been. In the U.S., total GM sales were 2.55 million through the end of November.
However, the Detroit based automaker is facing a serious challenge to its long held sales leadership in the communist country from Volkswagen Group this year. GM was apparently caught napping and did not anticipate shifts in the market to small trucks and SUVs. Both companies are on track to deliver 3 million or more vehicles during 2013, a record for both.
GM and its joint ventures offer more than 40 different models under seven brands in China. Its products range from mini-cars to luxury sedans and from mini-commercial vehicles to light-duty trucks. Most of its vehicles sold in China are manufactured in China (unlike the U.S. China protects its market with high import taxes), and some are engineered and designed locally.
GM also offers services familiar to Westerners tailored for the Chinese market. Its Shanghai OnStar joint venture is the leading provider of safety, maintenance and telematics in China, while its GMAC-SAIC joint venture is the automotive financing leader.
GM’s joint ventures are investing about $11 billion in vehicles, facilities and people through 2016.
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