GM goes hybrid in China

Posted Nov 28th 2007 4:39AM by Douglas McIntyre
Filed under: Launches, Industry, General Motors (GM), Marketing and Advertising, China

It may not solve the air pollution problem all by itself, but GM (NYSE: GM) will begin to make hybrid cars in China in time for the Olympics.

But the No.1 US car company may have trouble selling the vehicles. According to Reuters "Demand for hybrids is negligible in China, where fuel economy figures little in consumers' purchasing decisions." With oil trading above $90 and China driving much of the global demand, that dynamic could change quickly.

The GM move seems to be a PR stunt as much as anything else. The automaker knows that putting out a hybrid in the world's second-largest car market will get it coverage as foreign press flood China for the 2008 Olympics. One can just see all of the US athletes being driven to and from the Games in their shiny new GM hybrids. Made in China. Driven in China.

But the fuel problem in the world's most populated country is severe. Last month, the government had to ration diesel and, at high prices, the Chinese government is paying a huge premium to keep its GDP rising by underwriting energy costs.

Perhaps some of the senior members of the Communist Party will be in hybrids next year as well.

Douglas A. McIntyre is an editor at 247wallst.com.

Tags: general motors, GeneralMotors, gm, hybrid, hybrid vehicles, HybridVehicles, inthenews

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Reader Comments (Page 1 of 1)

11-28-2007 @ 10:04AM

Paul McCoy said...

Remember when "our" US government kept the Chinese government 2 1/2 generations behind us in technological information??? That was when it was OUR government and NOT the sole property of an elite aristocracy hell-bent on profits over OUR national security. Corporate America's greed has awaken a "sleeping giant" that fundamentally hates us and thereby they've committed acts of treason. Let them pay for the mess they've made by taxation. Let them send THEIR children to fight China when it rears up on its hind legs to crush us.

11-28-2007 @ 10:04AM

Paul McCoy said...

Don't buy a car today, because what has happened to the price of homes will soon happen to the price of cars. The American Auto Industry did this to themselves with their "short term" thinking of cutting wages and their workforce in half to save money up front. They off-shored EVERYTHING and today the housing market is going bust; and soon will the auto industry. So, where's the American Auto Industry BIG GAIN now?!! They made a short term BIG profit, but they will soon suffer an even BIGGER long term disastrous loss.

11-28-2007 @ 11:28AM

vcs745 said...

GM/UAW contract has given GM the needed flexibility to produce, market and sell its product now without added costs. Profits will now appear in future reports and the core suppliers now enjoy long term contracts with their suppliers because of this contract compression on wages, pension, health, benefits, etc. Quality will now get better than Toyota/Honda who will now have a dilema to face with their employees on future wages to be competitive with GM/Ford employees....ought to be interesting to say the least!

11-28-2007 @ 11:33AM

V.S. said...

McCoy or whatever...........wrong on this one!...This is a long term gain for GM/Ford companies and the market share in the future will provide expansion and growth. GM is already setting up core suppliers with long term contracts which in turn creates long term contracts with their suppliers.........quality......wins! The buyers will see this immediately! Price.....steady!........Toyota/Honda....are in a delima for a change.....wages that are now double GM/Ford....are they going to tell their workers that a wage freeze is in order to be competitive while having record profits???? It will be interesting!