GM Has a Great Quarter in China

Chevy Spark – China

By Brendan Moore

04.02.2007

GM can do no wrong in China. First quarter results came out earlier today, and vehicle sales for General Motors were up 25% over first quarter 2006, which itself broke the previous quarter record.

Retail sales in China totaled 291,588 vehicles during the January-March period, including vehicles manufactured by Shanghai GM, their joint venture in China. As usual, the Buick nameplate led the way for GM’s results.

GM surpassed Volkswagen last year to become the biggest auto maker in China and shows no signs of let-up, and in fact, the retail sales gap between GM and VW is widening every month. If their U.S sales growth could match China’s, General Motors would have very few problems worth talking about.

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Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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2 Comments

  1. Maybe GN shoould just pack it in here and only sell cars in China. Or maybe just Buick should pack it in and become a china-only brand, if they’re so popular there.

  2. jimla, you’re probably saying your comment partially tongue-in-cheek, but they’re probably not far from that point. The only thing keeping Buick alive in the US at this point is the fact that most dealerships are combined with Pontiac and GMC. GM is hoping to get standalone Buick dealers to either go multichannel (with P&G) or close their doors, and the product starvation is part of that strategy. GM’s argument is that if a Buick dealer wants to sell a full line of cars, they need to sell GMCs and Pontiacs too.

    China’s where the next-generation LaCrosse will be designed, since the Chinese designers did a much better job with their take on the old GM W-body platform than their US peers did, so hopefully for Buick, they can turn this ship around.

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