If GM wants to pull off a smashing IPO, they need smashing numbers. There are people they can learn from: Their friends and joint venture partners at China’s SAIC. China’s largest automaker (they have joint ventures with both GM and Volkswagen, can’t get any bigger), said first-half profit may have more than quadrupled from a year earlier, reports Bloomberg. And the secret to their success?
Rising demand for vehicles in the world’s most populous nation. Duh.
China’s passenger-car sales have risen every month since February 2009, and at least the GM portion of SAIC’s business outpaced the market. SAIC’s total sales in the first six months rose by 44 percent to more than 1.77 million units. in the first half, today’s statement said.
In the meantime, SAIC’s stock has declined 29 percent this year. As a Chinese stock trader told me: “The Chinese stock market is totally decoupled from fundamentals.” If GM unravels that secret, nothing will be in the way of an IPO with a huge pop.