GM will spend $14 billion in China despite slowing sales

Article by Christian A., on October 27, 2014

General Motors is spending around $14 billion in China from 2014 to 2018 despite experiencing slumping sales in the country. The investment entails opening five new sites that would increase GM’s capacity in the country to just below 5 million vehicles – a figure that is nearly double its sales in the United States last year.

GM China President Matt Tsien remarked to Automotive News that with the investment, China could become the largest market by the end of the decade. "We're poised to grow at a very rapid pace," he said. Auto sales in Chine grew just 3 percent last month and jumped 7 percent in the first nine months of 2014 – small figures compared to double-digit growth posted in last few years and to a 14-percent rise in 2013.

Cadillac saw its sales jump 51 percent in September in China, and is on track to sell 70,000 units for the full year. GM’s luxury brand could also achieve its 100,000 sales goal ahead of schedule next year.

While the figure still pales compared to Cadillac’s sales in the US at 182,543 autos, the brand’s rapid growth in China means the country becoming an important market to its future. Plans for China include introducing nine new models in the next five years while adding one locally built nameplate annually through 2016.

Shanghai General Motors Co., a joint venture between GM and SAIC Motor Corp., is building a dedicated Cadillac site in Shanghai that could produce up to 160,000 vehicles annually. China accounted for 20 percent of Cadillac’s total sales in 2013, compared to just 10 percent in 2010.

If you liked the article, share on:

Topics: gm, china, sales

Comments

Recommended

The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries