General Motors, struggling to avoid bankruptcy, aims to accelerate growth in China in 2009 to the fastest in two years, betting on new models to reverse waning demand for its locally made Buick and Chevrolet cars.
GM expects to sell as many as 1.2 million vehicles in 2009 in China, 9.1 percent more than the current year's target, Kevin Wale, president of GM China told Bloomberg Television.
"The market next year is going to be a little tough in the first half, but it will pick up in the latter half," Wale said.
Detroit-based GM, Ford and Chrysler are seeking a bailout loan from the United States government to stave off a collapse. Sales of GM's Chinese-made vehicles have risen 8.1 percent this year through October, compared with a 20-percent slide in its US vehicle sales. GM, the biggest overseas auto maker in China, is counting on emerging markets and a US government bailout to help it survive a plunge in North American sales. The auto maker added a new Buick Regal this month in China and plans to introduce 10 new models in the country by 2011, according to Wale.
GM's China-made vehicle sales rose to 861,458 in the first 10 months, as sales dropped to 2.56 million in the US. China's industry-wide auto sales rose 11 percent to 7.83 million in the period.
Vehicle sales in China may fall short of a sales forecast of 10 million units this year, as slowing economic growth undermines consumers' purchasing power, according to the China Association of Automobile Manufacturers.
The industry's consensus for sales growth next year is 5 percent to 10 percent, compared with a 22-percent gain in 2007.
GM makes cars in China through a venture with SAIC Motor Corp, the largest domestic auto maker. The company also has a minivan venture in the country.
(Shanghai Daily December 8, 2008)
