More than any other country in the world, GM (NYSE: GM) is counting on China to save its bacon. Car sales in the U.S. and Europe are awful. China is on its way to passing the U.S. as the world's largest vehicle market.
According to The Wall Street Journal, "J.D. Power expects GM's China sales of passenger vehicles may contract as much as 5.5% this year, its first decline since 1999." GM was recently neck-in-neck with VW as the market leader in the country. Now it appears GM will fall behind both Toyota (NYSE:TM) and VW.
Data from Powers indicates that GM cannot escape its reputation for building cars that have quality and fuel-efficiency problems. Half way around the world from its home market, GM is deviled by the same troubles that have ruined its market share in the U.S.
The data from the world's most populated country indicate the no matter how much money GM can get from the U.S. to cover loans to improve the car company's American factories, there are some things cash cannot fix.
GM's situation may become hopeless soon because so few people think it builds a good car.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
10-20-2008 @ 4:53PM
Ken said...
It seems irresponsible to headline the post "GM's troubled sales get worse", when the text of the post actually states that one data source seems to indicate sales in China "may contract" in 2008. The article appears to be more conjecture and editorial than fact, and every bit of the author's material and diction ("ruined", "deviled", "hopeless") makes clear the author's broader disdain for GM as opposed to objective news dissemination.
9-26-2008 @ 3:52PM
Andres said...
GM's problems are, as the article stated, QUALITY!!! One thing is been a proud American as I am; and another being blind to reality.