GM works to keep top spot in Chinese market, double annual sales

Detroit Free Press (Shanghai) - General Motors aims to double its annual Chinese sales to around 5 million by 2015, introducing more than 60 new or refreshed models, as it seeks to keep the first-place position it and its joint ventures enjoy in the world's largest car market.

Buick will account for 12 of the new or refreshed models, and Chevrolet will introduce 15. The Chevies will include a new lineup of SUVs and performance vehicles, such as the Camaro, which GM is starting to import to China.

GM and its joint ventures passed 2 million sales in China last year, four years ahead of their stated goal, doubling its sales in two years to sell 2.35 million vehicles. When GM China President Kevin Wale announced GM's new sales forecast Monday, a flurry of Chinese journalists' flash bulbs lit up the PowerPoint slide.

The goal was set in advance of the media days of the Shanghai auto show, which starts today and runs through Wednesday.

Still, China's once-furious growth is slowing. The country's sales increased by nearly half in 2009 and another third last year, but the government has since eliminated some incentives and limited vehicle registrations in Beijing to help ease traffic congestion.

"If you take away the government incentives, the underlying trends still point to strong growth," Wale said. For instance, 75% to 80% of car buyers remain first-time purchasers, and smaller cities continue to grow and add wealth, spurring their vehicle sales.

GM predicts a 10% to 15% increase in industry sales of cars and light trucks and commercial vans this year. In the first quarter, GM and its joint ventures increased sales by 10%, while the overall Chinese market grew 8%.

The China operations will spend $5 billion to $7 billion over five years to sustain that growth with new plants and vehicle development, Wale told journalists after forecasting the sales increase.

The company has capacity to assemble 2.9 million vehicles in China annually and is already building plants that will add the ability to build another 800,000 vehicles, he said. Also this month, Ford announced plans to expand in China by adding 15 products and doubling its work force by 2015.

The new vehicles that will accompany GM's expansion will include a completely refreshed Cadillac portfolio, plus some additions, Wale said. Jiefang, a Chinese truck brand, will expand into new segments. And the ultra-inexpensive Chinese Baojun -- or "treasured horse" brand, will launch this year with a stripped-down compact car called the 630. More models will come annually, Wale said.

One of Buick's new models could be the Envision concept plug-in hybrid crossover unveiled Monday.