By
Sarfaraz A. Khan and Mehreen Tanveer
General Motors is planning for a major push in the Chinese market with an
onslaught of SUVs and Cadillacs n the back of a massive $11 billion investment
plan through 2016.
General Motors (NYSE:GM) is one of the leading
global vehicle manufacturers that not only dominates North America but also the
emerging markets, particularly the BRIC nations where it is one of the leading
foreign players with significant market share. In its previous quarterly results, GM earned more than 60% of its revenues
from North America while the rest came from Europe, South America and other
international operations (including China).
(Figure 1)
August Growth: GM and China
In the previous month (August), GM reported its best monthly sales numbers since the
global financial crisis of 2008. On an year-over-year basis, total vehicle
sales in the U.S rose by 14.7% to 275,847 vehicles while retail sales rose
22.1% to 220,958 vehicles. The sales of crossover, full-size pickups and large
SUVs rose 34%, 15% and 29% respectively. Moreover, new product launches and
modifications after 2010 of Chevrolet Volt, Chevrolet Spark, Chevrolet Sonic,
Cadillac XTS, and Buick Verano have strengthened the company's position.
Meanwhile, China has continued its recovery from the global financial
crisis which is translating into increasing demand for vehicles. In August
2013, sale of non-commercial vehicles rose by 11% to 1.35 million as compared to 1.22
million last year, according to data provided by China Association of
Automobile Manufacturers.
The 11% growth shows a record increase from 10.5% in July and 9.3% in
June 2013. The increasing levels of income and low car ownership rates have
propelled the demand of vehicles in the country's … read full article with images
at Seeking Alpha.
