China ¡°critical¡± for the future of General Motors

As American consumers have tightened their purses in recent months, moving away from the new car industry, automakers are turning to international markets to keep afloat. Most recently, GM announced plans to focus on the Chinese auto market in hopes that the thriving industry will revive the troubled company.

According to GM, the Chinese auto industry was the leading market in the world for the first half of 2009. The company also maintains that domestic sales of GM vehicles in China have risen considerably for each of the first five months of 2009, as compared to 2008. By the end of 2008, GM claimed a 12% market share in China, and hopes to increase that figure over the next 5 years.

As economic development spreads throughout China, more people will be able to afford to purchase cars. The overwhelming population throughout the nation is indicative of the potential that large companies hope to tap in the emerging Chinese markets. While GM has been unsuccessful in securing a top-spot in the American auto market for many years, the company¡¯s new restructuring plan sets realistic goals for the future. GM management hopes to produce more efficient vehicles that will appeal to thrifty spenders in the US, and plans to introduce new and improved vehicles worldwide to stimulate global sales. Many people believe this is a last hope for GM, but if the company¡¯s reported numbers are correct, the Chinese market will play a substantial role in revitalizing the auto industry.


Source: China Daily (via lawinfochina.com)



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