Auto giants gearing up for China market potential

Major world players in the global auto industry are investing more in their China operations while they are struggling elsewhere.

In June, 2009, Ford relocated its Asia-pacific and Africa headquarters to Shanghai. The newly established GM also located its international operation center in Shanghai.

Kevin E. Wale, president of GM China, said that the new GM will focus its business in China as its next step. GM's sales in China will double to two million cars in five years from now. And GM China is committed to its R&D capability.

Unlike the outstanding performance of other multinational auto giants in China, in the first half of 2009 Toyota's performance in China was flat. However, it's not bad compared with its slump of 26 percent in global auto sales.

Due to its good performance in the Chinese market, Toyota, with its global sales of 3,564,000 cars, has secured its No. 1 position in the industry with its competitor GM's sales reaching 3,552,700 cars.

Philippe Varin, new CEO of PSA Peugeot Citroen, stated recently that they would further expand investment in China and establish its second whole vehicle joint venture here.