To win globally, win in China: GM

• Source: The Global Times
• [18:14 April 27 2009]
• Comments

By Shi Jierui

Shanghai GM and the Buick brand won't be at risk if GM in the US files for bankruptcy, says Terry Johnsson, vice president of Shanghai General Motors Corp.

"We don't think it will be affected at all," Johnsson told Automotive News on the sidelines of the Shanghai Auto Show last week. "Any scenario for transforming the company is always going to treasure those parts of the business that are generating cash."

He added Buick, which is on track to sell more cars in China than in North America again this year, will be protected from the bankruptcy filing.

In March, GM recorded a 24.6 percent sales increase in China to a monthly record of 137,004 units.

Given the hardships of GM's other units and the rapid evolution of the Chinese auto industry, GM China is now considered to be one of the few departments in the company that may survive the current economic crisis without major damage.

"To win globally, we must win in China," GM CFO Ray Young told a small audience at a Chinese business luncheon in Detroit last week.

GM also has a minority interest in micro minivan maker Liuzhou Wuling Motors Co. Young said last week Wuling would eventually begin developing its own series of inexpensive passenger cars that are consumer-oriented and is a considerable opportunity for GM.

China is expected to become the world's No. 1 vehicle producer this year, surpassing Japan. Young said he is starting to think China could outmuscle the US this year as the No. 1 market for vehicle sales. GM had predicted China would surpass the US in 2015, but Chinese sales leapfrogged those in the US in the first quarter of this year.