Gripenfelter
07-05-2006, 07:45 AM
http://www.thestar.com/NASApp/cs/ContentServer?pagename=thestar/Layout/Article_Type1&c=Article&cid=1152007325510&call_pageid=968332188492
Jul. 4, 2006. 11:54 AM
ELAINE KURTENBACH
ASSOCIATED PRESS
SHANGHAI — Despite its woes in the U.S. auto market, General Motors Corp. reports business in China is booming.
The world’s largest automaker said Tuesday its sales in China during the first half of this year jumped 47 per cent over a year earlier, helped by stronger than expected demand.
GM and its joint ventures sold 453,832 vehicles in China in the January-June period, compared with 308,722 in the same period of 2005, the company stated.
GM claims a 12.5 per cent share of China’s quickly growing auto market, up from 10.8 per cent a year earlier, making it the No. 1 foreign automaker in the country.
Last year, its sales in China surpassed those of longtime leader Volkswagen AG of Germany, which also reported strong sales growth in the first half.
Beset by declining profits and growing competition back home, General Motors has sought to cash in on a rebound in auto sales in China by rolling out new and upgraded models under several brand names.
Sales of the Buick Excelle sedan climbed 38.7 per cent year-on-year in the first half to 145,786 units, while sales of the Sail and other Chevrolet models surged 81.4 per cent to 75,710.
“We capitalized by rolling out a series of new and upgraded products under several brands to complement our existing lineup of vehicles,” said Kevin Wale, president of GM China Group.
China reported that overall auto sales rose 30.8 per cent in the January-May period to 2.97 million units, while output rose 32 per cent to three million units.
That followed a 21 per cent increase in passenger car sales during 2005.
GM’s flagship joint venture with Shanghai Automotive Industry Corp. Group saw sales rise 49 per cent in the first half to 201,901, while sales of its minivan and commercial joint venture, SAIC-GM-Wuling, climbed 45 per cent to 250,066, GM said.
Meanwhile, Volkswagen reported Tuesday that its sales in China jumped 30 per cent in the first half amid launches of several new models.
Volkswagen said it sold 345,375 units in China in the six-month period, including imports and Audi-branded vehicles.
VW was the first major foreign automaker to enter the China market in 1984 through a joint venture. Its sales fell about 15 per cent last year to 564,306, while GM sales climbed 35 per cent to 665,390.
GM’s success in China has been largely overshadowed by its woes back home. The company has embarked on a massive restructuring plan designed to improve its poorly performing North American division, which is suffering from declining profits, high labour costs and growing competition from Asian automakers.
GM announced plans last year to close 12 plants by 2008 and recently said 35,000 hourly workers had agreed to retire early or accept a buyout offer.
In June, the automaker’s U.S. sales plunged 25.7 per cent from the same month a year ago.
Jul. 4, 2006. 11:54 AM
ELAINE KURTENBACH
ASSOCIATED PRESS
SHANGHAI — Despite its woes in the U.S. auto market, General Motors Corp. reports business in China is booming.
The world’s largest automaker said Tuesday its sales in China during the first half of this year jumped 47 per cent over a year earlier, helped by stronger than expected demand.
GM and its joint ventures sold 453,832 vehicles in China in the January-June period, compared with 308,722 in the same period of 2005, the company stated.
GM claims a 12.5 per cent share of China’s quickly growing auto market, up from 10.8 per cent a year earlier, making it the No. 1 foreign automaker in the country.
Last year, its sales in China surpassed those of longtime leader Volkswagen AG of Germany, which also reported strong sales growth in the first half.
Beset by declining profits and growing competition back home, General Motors has sought to cash in on a rebound in auto sales in China by rolling out new and upgraded models under several brand names.
Sales of the Buick Excelle sedan climbed 38.7 per cent year-on-year in the first half to 145,786 units, while sales of the Sail and other Chevrolet models surged 81.4 per cent to 75,710.
“We capitalized by rolling out a series of new and upgraded products under several brands to complement our existing lineup of vehicles,” said Kevin Wale, president of GM China Group.
China reported that overall auto sales rose 30.8 per cent in the January-May period to 2.97 million units, while output rose 32 per cent to three million units.
That followed a 21 per cent increase in passenger car sales during 2005.
GM’s flagship joint venture with Shanghai Automotive Industry Corp. Group saw sales rise 49 per cent in the first half to 201,901, while sales of its minivan and commercial joint venture, SAIC-GM-Wuling, climbed 45 per cent to 250,066, GM said.
Meanwhile, Volkswagen reported Tuesday that its sales in China jumped 30 per cent in the first half amid launches of several new models.
Volkswagen said it sold 345,375 units in China in the six-month period, including imports and Audi-branded vehicles.
VW was the first major foreign automaker to enter the China market in 1984 through a joint venture. Its sales fell about 15 per cent last year to 564,306, while GM sales climbed 35 per cent to 665,390.
GM’s success in China has been largely overshadowed by its woes back home. The company has embarked on a massive restructuring plan designed to improve its poorly performing North American division, which is suffering from declining profits, high labour costs and growing competition from Asian automakers.
GM announced plans last year to close 12 plants by 2008 and recently said 35,000 hourly workers had agreed to retire early or accept a buyout offer.
In June, the automaker’s U.S. sales plunged 25.7 per cent from the same month a year ago.