WORLD> Industrial Shake-up
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WORLD> Industrial Shake-up
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China 'critical' to future growth of new GM, CEO says
By Michael Katz in New York and Li Fangfang in Beijing (China Daily)
Updated: 2009-06-03 08:22
GM is also waiting for government approval to tie up with China's FAW Group for producing commercial vehicles in northeast China. The light-truck plant would be GM's third joint venture in China once the deal is approved. One of the reasons GM China expects to stay the course, Wale said, was due to the strength of the Chinese auto market. According to GM, China has been the largest vehicle market in the world during the first five months of 2009. "Domestic sales of vehicles by GM China and our joint ventures continue to be strong, rising 33.8 percent year on year in the first five months," Wale said. "We intend to remain an industry leader in China." After GM China hit a monthly sales record in April, of 151,084 units, increasing 50 percent year-on-year, its market performance hit a new high in May with a 75.2 percent jump over last year, to 156,363 units. Wale said that GM China might raise the target for 2009 in June if the sales remain robust. In China, GM has eight joint ventures, two wholly owned foreign enterprises and more than 20,000 employees, according to the company. Products are sold under the Buick, Cadillac, Chevrolet, Opel, Saab and Wuling brands. GM ended 2008 with a market share in China of 12.06 percent, and the company claims that it has been the sales leader among global automakers in China for three straight years. The company said it expects the new, restructured GM to emerge in two to three months as a separate and independent entity from the current GM. It hopes to have a stronger balance sheet due to a significantly lower debt burden and operating costs.
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