GM will introduce more than 20 new and upgraded models during the next two years in China, as well as strengthen Chinese product development capability, which means more Chinese jobs.
General Motors and its eleven government-mandated Chinese joint ventures sold 184,498 vehicles in China during February, setting a new GM record for the month, but not, repeat not, outperforming GM’s amazing sales of 207,000 in its home U.S. market.
GM has been the sales leader among global automakers in China – by far the world’s largest automarket – for six consecutive years, and remains clearly the leader in the U.S., a position it has held since the 1930s.
GM’s growing sales momentum is a vindication of the Obama Administration’s controversial decision to reorganize GM with borrowed taxpayer dollars in the face of fierce ideological opposition from the Republican party, which was happy to see the jobs – and more importantly the substantial union support of the Democrats – consigned to the scrap heap. This was under a Bush Administration whose economic policies were reminiscent of Herbert Hoover’s failed stewardship that caused the Great Depression.
The Obama Administration back in 2009 argued – correctly it turns out – that GM had substantial global strengths, if only it could be freed of years of mismanagement at the top, heavy debt and irresponsible union contracts.
In one of the ironies of history, the Democrats broke the union, fired the management and ruthlessly eliminated the Wall Street bond speculators in a reorganization that now looks to be on track to make U.S. taxpayers money because of Treasury’s ownership of stock in the new General Motors Company. Isn’t capitalism grand?
In China, Shanghai GM had an all-time record February sales of 78,207 vehicles, with year-on-year growth of 34.4%.
Buick sales rose 45.9% on an annual basis to 40,250 units – selling but 15,000 units in the U.S. Several Chinese Buick products had record February sales, including the New Regal and new LaCrosse and Excelle passenger car lines.
Chevrolet sales in rose 5.7% on an annual basis to 42,358 units in February compared to 143,000 in the U.S. The Cruze sedan – increasingly a formidable competitor wherever it is sold, was Chevrolet’s most popular model. (See Driving Impression – Chevrolet Cruze )
The Cadillac SRX crossover sport utility vehicle rose 121.1% year on year to 1,992 units.
SAIC-GM-Wuling sold 101,133 mini-vehicles in and FAW-GM sold 5,079 vehicles domestically in February.
This of course follows an all-time record for GM Chinese monthly sales in January as GM’s two largest manufacturing joint ventures – required by Chinese government industrial policy – posted new monthly highs for vehicle sales in what is now the world’s largest market of more than 18 million vehicles annually. GM and its 11 joint ventures sold 268,071 vehicles in China in January, an increase of 22% from the January of 2010. GM’s previous monthly sales record of 230,038 vehicles was set in March 2010.GM ended January with an estimated market share of 14.7% in China.
It’s a continuation of GM’s strong performance in China during 2010 at 2,351,610 vehicles. That’s more cars and trucks than GM sold in the U.S. last year even as it increased sales 21with its four remaining brands selling 2,202,927 vehicles – or 118,435 more vehicles than GM’s eight brands did in 2009, the year GM emerged from bankruptcy.
GM will introduce more than 20 new and upgraded models during the next two years in China, as well as strengthen Chinese product development capability, which means more Chinese jobs.
