SAIC Motor may raise 2009 vehicle sales target

Shanghai, June 9 (Gasgoo.com) SAIC Motor may consider raising its vehicle sales target for 2009 and hopes sales growth this year will at least be better than the market, the company's president Chen Hong said today, according to Reuters. But the target was not specified.

He told a shareholders' meeting that SAIC was also confident that its partner General Motors Corp, its partner would be able to navigate through bankruptcy.

Shanghai GM, General Motors' passenger car joint venture with SAIC Motor, saw its sales in the first five months rise 12% year on year (y/y) to 228,000 units. The venture sold 56,011 vehicles in May, up 50% y/y, overtaking its April's sales growth of 34.7% (55,245 units).

Sales were notably stronger at GM's joint venture with SAIC and Wuling Automobile Co., which primarily makes mini commercial vehicles. Sales at SAIC-GM-Wuling rose 49% in the first five months of this year to 442,000 units.

Shanghai VW, a passenger-vehicle joint venture between SAIC and Volkswagen AG, sold 59,754 vehicles in May, up 57% from a year earlier.

SAIC Motor said last month it will mainly use the 1.5L and 1.5T series of engines on its future models to benefit more from the government's support measures (such as sales tax cuts and subsidies) for small vehicles.