Saturday, December 5, 2015

GM Posts China Sales Record in November

In November, General Motors Co. set a sales record in China due to new purchase incentives and model updates. This is good news for GM because their slump may be over. The No. 1 U.S. auto maker said it sold 346,000 vehicles in China last month, a 14% increase compared with the same period a year ago on strong demand for its Buick, Cadillac and local Baojun car brands.

Government tax breaks for car purchases and increased demand for sport-utility vehicles, created an advantage for American auto-makers by fueling GM’s performance and likely lifted the auto industry during the month.“The market has been improving in the past two months,” said GM’s China chief, Matt Tsien. “We are well positioned to achieve a strong finish to the year.”

Although U.S. is the most profitable market for GM, analysts closely monitor it has a large manufacturing footprint in China and is planning billions of dollars in additional investments in that country in coming years.Next year, GM will ship China-made Buicks to U.S. dealers, becoming the first global auto-maker after Volvo Car Corp. to import Chinese-made vehicles for sale in America. Buick is a niche brand in the U.S., but is a high-volume in China.

I found it interesting that sales skyrocketed in China. I am curious to see how the Chinese-made vehicles will sell in America.

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