GM remains optimistic about China market growth

Shanghai, June 13 (Gasgoo.com) Although the auto market has undergone many "turning points" recently amid the soaring raw materials prices and falling US dollar, global car-making giant General Motors remains optimistic about the Chinese market. China will continue to be GM's major market for return to profit, Fritz Henderson, its newly appointed president and chief operating officer, said in Shanghai yesterday.

A continuing interest in the Chinese market, plus other emerging markets such as Russia and Latin American, is a top priority for GM, the world's largest automaker which is struggling to cover the slump in the United States to retain its lead over Toyota. Customers have shunned GM's gas-guzzling SUVs and shifted to energy-efficient compact cars due to record high fuel prices, leaving GM in a loss-making session since 2006.

GM has pledged to invest $1 billion annually with its Chinese partner, Shanghai Automotive Industry Corp (SAIC), in new products and capacity expansion of Shanghai GM, which is operating a facility for passenger vehicles and another for light commercial vehicles, with a combined 12% market share in the first quarter this year. Shanghai GM has no immediate plan to make own-brand cars yet, said Henderson, who was making his first trip to China since he took up his GM presidency in March.

Henderson added that GM is optimistic about its growth the China market. The US automaker also opened up the possibility of selling its Hummer brand to a Chinese company. "If any Chinese companies are interested in buying Hummer, it will be certainly an option for us to look at. We need to open for all ideas," he said.

Henderson's trip comes just 10 days after GM introduced a restructuring plan which includes closing four truck plants in the U.S. and making a new generation of compact cars with smaller capacity engines.