G.M. China To Raise Profits
China, the world’s largest car market since 2009, has recently begun switching from fuel saving compact cars to more “American” sized cars. As a result, China’s oil importing bill is on the rise, as well as pollution levels, which automaker’s don’t care about since their profits are growing. For S.U.V.s, their sales have jumped 49 percent compared to last year and auto sales overall in China rose by 13 percent and almost 21 million vehicles were sold in China compared to the U.S. who sold only 15 million.
General Motors China the main automaker in China next to Volkswagen, has stated it would introduce nine new S.U.V. models in China in the next five years, while building four additional factories and creating around 6,000 more jobs. Bob Socia, President of G.M. noted that his company was focusing more on luxury vehicles and S.U.V.s and that ‘Not long ago, both were considered niche segments,” he said. “Both are now mainstream and growing rapidly.” In addition, he predicted that S.U.V. sales would double by 2015 to 4 million vehicles, but still trailing behind the 5 million midsize cars; midsize cars make up the largest market segment in China, bigger than Japan’s entire auto market or the combined auto markets of Germany and Britain for comparisons sake.
Written by Kevin Zhang