GM Expects More Growth In China
If you think that China’s car market (they are expecting to sell between 16 and 17m units this year) is a bubble about to burst big-time, then GM will disagree strongly with you. “The market is still quite solid. As you know this year is going to be a strong year. We will see continued growth next year, but growing at a range between 10 to 15 percent,” said Kevin Wale of GM China to Reuters.
The Wall Street Journal is also in agreement: “Year-to-year growth may be slowing, but auto sales were still up 48 percent in the first half from a year earlier. Few analysts see anything other than continued expansion of car ownership in China in the coming years.”
GM has a lot riding on China. China is officially GM’s largest market.
Soon, GM will be building new factories in China to keep up with the demand: “When you’re selling about 2 million units a year, a 10 or 15 percent growth is a new assembly plant,” said Wale. And 15 percent growth on top of 17m would be close to 20m cars in China next year.
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