GM not to sell China assets, but invest further

Shanghai, December 5 (Gasgoo.com) Although the auto industry and U.S. three auto giants are undergoing very tough days now, Kevin Wale, president of GM China, said General Motors will not sell its assets in China, but instead will increase investment in its China operations, reported caijing.com.cn today.

At a business meeting yesterday, Kevin Wale noted that GM has achieved good sales in China this year, with the sales rising to 1.1 million vehicles from 1 million of 2007, and its market share has also expanded. The year 2008 has been very difficult for GM and many other automakers, but GM has actually developed better than expected in the Chinese market. It is impossible for GM to sell its assets in China, said Wale.

He said that all the auto industry is going through a chilly "winter" which may be the hardest period since the Great Depression, but for GM as a global automaker, China and India remain to be the two most important markets. Although the world economy is slowing down, the Chinese market will have surprising growth in future. That's why GM will invest further in China.     

While struggling to avoid bankruptcy, GM aims to accelerate growth in China in 2009 to the fastest in two years, betting new models will reverse waning demand for its locally made Buick and Chevrolet cars. Sales of GM's Chinese-made vehicles have risen 8.1 percent this year through October, compared with a 20 percent slide in its U.S. vehicle sales.

GM expects to sell as many as 1.2 million vehicles in 2009 in China from this year's 1.1 million, said Wale, adding that the market next year is going to be a little tough in the first half, but it will pick up in the latter half.

In China, GM makes cars through a venture with SAIC Motor Corp., the country’s largest automaker. The company also has a minivan venture SAIC-GM-Wuling in southwestern Guangxi province of the country.

Detroit-based GM, Ford and Chrysler, the Big Three auto giants of the U.S., are seeking $34 billion from the U.S. government to stave off any industry collapse.