Behind The Wheel
- Obama's Emission Reduction Pledge Paints Future for Autos
- Toyota Makes Recall Fix And So Long Saab
- The L.A. Extravaganza: A Test for Auto Shows
- Volt Drive: Great Ride, Interesting Interior and a Friendly Chirp
- Volvo Talks Show New Day Dawning for China
- Starting Car2Go - Smart Move for Daimler
- GM Cuts Losses—Plans Early Loan Repayment
- Ghosn's Bet: 10% of World Will Drive EV's in 10 Years
- Ford, Hyundai, Audi Gaining Interest
- Cadillac Converj Smart Extension of Volt
MOST SHARED
- 8 Retailers that Gain During the Holidays
- Get Paid Six Figures to Wear a T-Shirt?
- Dubai Spooks Investors But May Bring Buying Opportunity
- Dubai Fallout Is a Correction, Not Another Crisis: El-Erian
- Finding the Holiday's Best Buys
- Banks Play Down Dubai Exposure, Investors Still Wary
- The Good Entrepreneur Winner
- Longer Lines, Fuller Carts This Black Friday
- Global Selloff From Dubai Woes Shows Signs of Winding Down
- Some of Dubai World's Major Holdings Around Globe
- Strategists on Dubai: Avoid 'Rash Moves' Now
- Longer Lines, Fuller Carts This Black Friday
- Dubai Stock Market Fear Has 'Legs': Dennis Gartman
- Obama's Emission Reduction Pledge Paints Future for Autos
- Is Super Bowl Halftime Act Too Old?
- Surprising Options Trades in TiVo Shares
- EA Sports Hopes to Pump Up Sales Through Pop-Up Locations
- 8 Retailers that Gain During the Holidays
- Farrell: What's Different On This Black Friday
- Dubai Stock Selloff May Bring Buying Opportunity
- Dubai Fallout Is a Correction, Not Another Crisis: El-Erian
- Dubai's Debt Woes Signal New Era for Creditors
- Longer Lines, Fuller Carts This Black Friday
- The World's Biggest Debtor Nations
- Five Tips for Buying a Foreclosed Home
- Shoppers Hit Black Friday Sales; Budgets Pared
- Slideshow: Fantasy Christmas Gifts 2009
- EA Sports Hopes to Pump Up Sales With Pop-Ups
RSS FEED
Text Size 
CNBC Correspondent
 |
Thanks to a government incentive program stoking demand for new vehicles, GM sales soared 77 % last month - this at a time when auto sales for the entire auto industry also took off.
So far this year, GM has sold more than 1.5 million vehicles in China. Not far behind GM U.S. sales which are 1.71 million this year.
This is the kind of growth GM was hoping for when it first opened plants in China in the late 90's. At the time, critics called the strategy by then CEO John Smith and his top lieutenant Rick Wagoner and interesting move that could pay off someday. But back then the focus was on the steady decline in GM's U.S. business and not on how China sales might pan out in years to come.
It's now clear it won't be long before China passes the U.S. for good and for all automakers; it is becoming critical to not only have a presence in China, but also be ready to grow.
Ford recently announced a new assembly in the country and is increasingly focused on China. It has a long way to go before it comes close to matching GMs footprint there. GM is #1 in China, fighting VW for the top spot.
China will not stay red hot forever. And in fact, many people who work the China auto market expect sales to cool off substantially once the government incentive program ends.
But even then, GM is in the right position to benefit as the Chinese market continues to grow.
_____________________________________
Click on Ticker to Track Corporate News:
- Ford Motor [F
Loading...
()
]
- Toyota Motor [TM
Loading...
()
]
- Nissan [NSANY
Loading...
()
]
- Honda Motor [HMC
Loading...
()
]
_____________________________________
Questions? Comments?
Data is a real-time snapshot *Data is delayed at least 15 minutes