GM, Ford sales in China rise despite slowdown in economic growth

Detroit Free Press - General Motors' sales in China rose 14.3% in October, and Ford reported a 48% increase even as the country's rate of economic growth slowed.

A contributing factor is that many Chinese buyers are boycotting Japanese brands due to a territorial dispute between China and Japan over five uninhabited islands in the East China Sea. They even disagree on the islands' name. Japan calls them Senkaku. China calls them Diaoyu.

"Things are not solid, especially in the foreign policy area, and growth has slowed," said Michael Dunne, a Hong Kong-based analyst. "Japan has taken it on the chin recently because of the dispute over the islands."

He said he saw a sign on a Japanese brand car that said, "I support China in the dispute. Don't hurt my car."

GM and its joint ventures sold 251,812 vehicles in China last month. Sales for the first 10 months of the year rose 10.5% to 2.3 million.

GM had 14.4% market share in China in the third quarter of 2012, according to an earnings report released last week. The company made a $689-million pre-tax profit in its International Operations unit, which includes the critically import China market.

The company's largest Chinese joint venture, Shanghai GM, reported a 13.8% increase in October to 117,611. Sales of the newer Wuling brand rose 17% to 118,788.

Chevrolet sales rose 8.3% to 54,660, bolstered by a 14.9% increase in the Chevy Sail family of vehicles to 18,385. Buick sales rose 7.7% to 60,510.

Cadillac sales, which GM wants to expand its market reach in China, rose 19.5% to 2,491.

Ford is a much smaller player, but the 60,518 vehicles sold in October were up 48% from a year ago, and sales are up 14% through 10 months.

The Focus, which Ford now builds in Chongqing, is driving sales as the automaker expands its manufacturing and dealer base in China. Focus racked up a record 33,614 wholesale vehicles sold in October and more than 221,000 year-to-date.

"Together with our partners, we are delighted the Ford Focus has been the best-selling nameplate in China," said Dave Schoch, CEO of Ford China.