GM selling cars in rapidly growing Chinese market

Washington Post, Tuesday, January 5, 2010: Automaker posts 67% increase in sales in 2009 due to joint ventures exploited rising affluence there to sell more than 1.8 million cars and trucks.

Leading the firm's sales in China were Buicks, as well as inexpensive small vans and pickups.The number of cars sold in China rivals the number sold in the United States, and the Chinese market is expected to condinue to grow rapidly.

"There is no question that China will become the world's largest auto market as long as the economy keeps growing," said Kelly Gallagher, a professor at Tufts University and the author of a book about the Chinese auto industry.

The potential for soaring sales has set off a race into China. The leaders in market share include Volkswagen, Changan, Shanghai automotive Industry Corp. and Hyundai.

GM's strength in the Chinese market last year partially offsets the collapse of its sales in the United States. A chart is publlished to that effect.

The joint venture sells pickups and small vans, known in China as "bread loaf cars" "Mian bao che" due to their shape as the loaf of bread in 3 Chinese characters of such ideograms for the phonetic equivalents in Pin Yin system.
For explanation: "A Glimpse of the Chinese Language" in English is dedicated for understanding,available free of charge via pdf format at www.rand.org for reference.

Many cars sell for roughly between $4,000 and $7,000.

Chinese consumers in the market system responded enthusiastically to our lineup of modern, fuel-efficient and stylish products. Kevin Wale,President and director of the GM China Group said.

I remember the expression:"What is good for General Motors is good for America." In other words,the private sector(GM) generates the success of the public sector(USA). Perhaps such may be modified as: Uncle Sam would bailout GM for the best interest of the nation. There is political economy in action nowadays.

Francis Shieh aka Xie Shihao,an octogenarian blogger with devotion to blog Sino-American Economics to the readers of interest to stay informed about the positive scenario for mutual benefit in the 21st century.

Tuesday, January 5, 2010 at 9.46 a.m.