China operation to grow even if GM goes under

Shanghai, April 13 (Gasgoo.com) Even if General Motors meets the worse-case scenario -- bankruptcy, its operations in China won’t be affected and will expand further as they have been making profits and have abundant fund and technologies, said Kevin Wale, president of GM China Group, to the media last week.

As the possibility of GM going bankrupt is looming large in the U.S., many customers and dealers in China’s auto market wonder how GM China will fare in the future. Less than two weeks ahead of the 2009 Shanghai auto show, GM China boss Kevin Wale told Chinese reporters that GM's China-based businesses, jointly operated with its Chinese partners, have been making profits and will expand further.

GM China has abundant fund supply to ensure its future investment and expansion. Even if a worse-case scenario happens to GM,  its Chinese ventures will continue to have the global technical and product support of GM. All this is beyond any question, Wale said as he briefed the media on GM China's strategies amid the crisis. "Our future (in China) is bright," he added confidently.

GM, hit by a steeper-than-expected downturn especially in North America, faces the threat of bankruptcy if it cannot complete reorganization by a U.S. government-imposed June 1 deadline.

But in China, GM saw its sales in March rise 24.6% from a year earlier to 137,004 vehicles, setting a company record for monthly sales as China's stimulus policies boosted the market. In the first three months, GM China sales grew 16.8% to 363,701 units.

General Motors Corp plans to double its vehicle sales in China to more than 2 million units by 2013. The Detriot automaker plans to add more than 30 new or upgraded models in China in the next five years.