GM Has Largest Market Share In China, Surpassing That Of The U.S.
Something like this has not happened since the creation of General Motors in 1908 by William C Durant: In 2010, China will officially become the first market of the manufacturer in Detroit, surpassing for the first time, the U.S. market. “This year, GM will sell 2.3 million vehicles in the Chinese market and will have a market share of 13.5%, well above the volume of registrations from the U.S.,” said Kevin Wale, GM Chairman and CEO of the subsidiary in China.
Thanks to an alliance with Shanghai Automotive (SAIC), whose origins date from 1997, the group factory Chevrolet, Cadillac and count Buick and 10 assembly plants and four engines, managed to keep their positions. A performance, in terms of increasingly fierce competition. For the former leader of the automotive world, the castle between China and the U.S. is the logical consequence of a double phenomenon: in America, GM has reduced the volume of activities, with the entry for a short duration, subject to bankruptcy law, which led to the killing, last summer, the Saturn brand, Pontiac and Hummer dealerships and to decrease network.
Meanwhile, the Chinese market has provided favorable conditions for U.S. manufacturers, such as GM claims, the present status of the local leader, ahead of Volkswagen and Hyundai-Kia group has ambitious. In the first nine months of the year, GM’s 1.77 million registered vehicles in China, almost as much as during the entire 2009 (1.83 million).
Baojun, a cheap car
Project or exceed the threshold of 2 million cars will be passed until December. Therefore, the new group aims to achieve a target volume of 3 million car registrations in 2015, meaning a further increase of 50%. Far from the crisis that has affected other brands in Europe, GM China beats all the records recorded in the last 20 years. And its factories are working in an average of 120%.
Projections for 2010 anticipate an increase of 25% of car market in China with over 17 million deliveries. To meet the demands of the authorities in Beijing and its diversification, GM, together with SAIC and Wuling its partners have created a mark in July, low cost, Baojun. By 2012, investments of the three groups in this vehicle production will increase by 50%.11