GM to add over 20 new, upgraded models
- Source: Global Times
- [08:07 February 16 2011]
- Comments
Daniel Akerson, chairman of General Motors Co, speaks at a news conference in Beijing Tuesday. The company said it would boost its investments in China. Photo: CFP
General Motors Co will add over 20 new and upgraded models in China, its CEO said Tuesday, as the US automaker looks to use its leading position in the world's biggest car market to reclaim the No.1 carmaker spot from Toyota Motor Corp.
"China is clearly a crown jewel in the GM universe," said GM Chief Executive Daniel Akerson, speaking in Beijing. "China is a unique market sitting in what I think is the highest growth area in the world for the next 10, 20, 30 years."
GM, which completed its IPO last year, is the largest overseas automaker in China, where it operates auto manufacturing ventures with State auto groups SAIC Motor and FAW Group. It lost the top global automaker spot to Toyota in 2007.
Global industry giants, from Bayerische Motoren Werke AG (BMW) to Volkswagen, have in the past two years racked up eye-popping sales in China, where growing national wealth has pushed auto sales to record highs.
But the once-booming market is settling into a more rational growth pattern of 10-15 percent this year after the government scrapped most of its auto industry incentives at the end of 2010.
The Beijing city government's recent move to impose quotas on new car registrations and possible similar moves by other big cities to tackle traffic gridlock will also apply the brakes on sales.
Going forward, GM will need to adjust its product lineup in China to compete, said analysts.
"GM is pretty well positioned in China in terms of product portfolio and strong local partnerships, especially with SAIC," said Zeng Zhiling, an analyst with JD Power Asia Pacific in Shanghai.
"But what GM may need to do is to produce sport-utility vehicles locally, as it's the fastest-growing passenger car segment in China."
Akerson didn't specify what models GM would add in China.
Reuters
