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GM Selling More Cars In China Than U.S.

TOM KRISHER and YURI KAGEYAMA   01/24/11 02:19 PM ET  AP

Gm China Sales

DETROIT — General Motors Co. sold more cars and trucks in China last year than it did in the U.S., for the first time in the company's 102-year history.

But despite GM's gains in China, Toyota Motor Corp. managed to hold onto the title of world's largest automaker. The Japanese company reported 8.42 million sales worldwide last year. That's 30,000 more than GM's 8.39 million in global sales for 2010.

GM expects its sales growth to continue, and industry analysts say it may dethrone Toyota as the global sales leader this year. The news came the same day that GM announced it was adding a shift and workers to a plant in Flint, Mich., that makes hot-selling pickup trucks.

GM and Toyota tied for the global sales lead in 2007, ending GM's 76-year string of dominance. Toyota took the title in 2008 and has held it ever since, but last year's string of embarrassing safety recalls and a resurgent GM combined to make the race close again.

"General Motors is going strong, and it's a sure sign of its re-emergence," said Yasuaki Iwamoto, auto analyst with Okasan Securities Co. in Tokyo.

GM spokesman Tom Henderson said the company isn't focusing on the race with Toyota.

"A financially healthy and sustainable business that benefits our customers, stakeholders and employees takes precedence over any ranking. Our motivation is to be the best global company and let the numbers speak for themselves," he said.

GM's global sales figure for 2010 was a dramatic 12 percent increase from 2009, a year in which it closed factories and was forced to take aid from the U.S. government to survive. Its sales in the U.S., including heavy-duty vehicles, rose 6.3 percent.

But it did even better in China, selling 2.35 million vehicles there, up 29 percent as an expanding middle class gained wealth, making it the world's largest car market. The showing in China was about 136,000 more than what GM sold in the U.S. Toyota, meanwhile, sold just 846,000 vehicles in China.

GM said it achieved double-digit jumps in five of its top 10 markets last year, including China. GM marked a 12.4 percent sales rise in Russia and a 10.4 percent rise in Brazil.

Separately, GM said Monday it will add a third shift to a pickup truck assembly plant in Flint, Mich., to meet demand for heavy-duty pickups.

Pickup truck sales in the U.S. were up 16 percent last year to 1.6 million vehicles, and they're still among the top-selling vehicles in the country. GM says small businesses are beginning to buy pickups again after staying out of the market for nearly two years.

The company said the expansion will generate 750 jobs for the Flint plant, which makes Chevrolet Silverado and GMC Sierra pickups and has been operating on two shifts per day. The last time the plant worked around the clock was in the second quarter of 2008.

GM will fill the shift by recalling laid off workers who will start arriving in the second quarter. It expects to hire no new employees.

The Flint factory employs about 2,100 hourly and salaried workers. It made 115,000 trucks last year.

___

Yuri Kageyama in Tokyo and Tom Murphy in Indianapolis contributed to this report.

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DETROIT — General Motors Co. sold more cars and trucks in China last year than it did in the U.S., for the first time in the company's 102-year history. But despite GM's gains in China, Toyota ...
DETROIT — General Motors Co. sold more cars and trucks in China last year than it did in the U.S., for the first time in the company's 102-year history. But despite GM's gains in China, Toyota ...
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10:46 PM on 01/26/2011
The new Buick Regal I bought was made in Shanghai, and actually, it is not from GM, it's from Shanghai GM. That is a joint venture, and the profit will be shared.
For me, American cars are better than Japanese cars. It's safe and strong!

Another point, american shouldn't be angry about GM and other companys. If GM go back to usa, japan and eu car makers will be so happy to take the market in China..
02:21 AM on 01/27/2011
Uh... The Buick Regal is a rebadged Opel Insignia which was built by GM's wholly owned European operations. The car you drive is currently imported from Germany, though North American production will soon commence at GM's Oshawa plant in Ontario.
10:26 PM on 01/26/2011
I bought a GM car last in China. Haha..
12:15 PM on 01/25/2011
This one-sided rah-rah G.M. story leaves out: G.M closing entire assembly plants in last two years.
For example, Janesville, WI plant shut down.and in addition, GM's U.S. facilities fell from 47 in 2008 to 34 by year-end 2010 and 33 by 2012 is planned. GM will reopen an unnamed, now-idled plant to build future small cars.
G.M. planned to sell and therefore manufacture more vehicles overseas than in the U.S.A. and now that is true.
G.M. extorted wage and benefits cuts from the once mighty U.A.W. because bankruptcy was an even worse option.
G.M. is sitting pretty with most of its profits not under U.S. taxation.

To gain government favors, which is crucial for its success in China, Shanghai GM made Cadillac a chief sponsor of a communist propaganda film "Birth of a Party" on September 1 2010, a film dedicated to the 90th anniversary of the Chinese communist party
02:31 AM on 01/27/2011
I would hope that GM expected to sell more cars to the 6 billion non-Americans that make-up this world. You act like it's a big conspiracy that a company would expect to sell more cars in a country of nearly 1.2 billion! The U.S. auto market is beyond matured. It's oversaturated. GM was absolutely right to focus on emerging countries like China, Russia, and Brazil.

Also, why is it a bad thing that GM has restructured its North American operations by shedding excess capacity (i.e. production facilities) and uncompetetive labor agreements. North America is still the company's biggest and most profitable region, so it is crucial that the company makes a profit there...
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StevieRae
2012 Choice-Oligarchy or a Republic
08:39 AM on 01/25/2011
Duh, isn't GM's move overseas understandable? Our profit-driven free market system in the US is constantly adjusting to demand for its products and given that everything is about "bottom-line" results, production and jobs will move closer to the new markets.

If we want our pension plans and 401-K's to continue to grow, isn't this what we expect the companies we invest in to do?
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Cinderpath
01:44 AM on 01/25/2011
Wow- it's like a reverse Wal-Mart, its about time we are selling there!
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loki
Better to die fighting, than live on knees
11:22 PM on 01/24/2011
I dont know what a GM sells for in China, but a new Scion xB in Beijing is around 6900 rmd, or around 10k usd. That same car is around $17k here.
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DCGeorge76
07:32 PM on 01/24/2011
Wow!, 136,000 more than they sold in the US.
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skyeagle
R.I.N.O.
06:26 PM on 01/24/2011
Here is the news on the recent annoucement of GM about Mexico. "January 20, 2011: General Motors today announced a new investment of $540 million (million dollars) in Toluca Mexico, which will generate 500 direct jobs and a similar number of indirect. With the presence of President Felipe Calderón and Enrique Pena Nieto, governor of the state, who attended the event as special guests, Grace Lieblein, president and CEO of the automaker in the country, said that this investment is devoted to the production of new 4-cylinder engines of 1.6 and 1.8 liters, with fuel efficiency for vehicles produced mostly in Mexico."
06:22 PM on 01/24/2011
General Motors reports Jan 2011 it sold more cars and trucks in China last year than it did in the U.S. for the first time in its 102-year history. The company sold 2.35 million vehicles in China. That's about 136,000 more than it sold in the U.S.

How is that for importing jobs? This is a perfect example of the inverse side of the left's argument that free trade exports jobs. The Chinese market is many times the size of America and the dynamism in its newly unleashed free markets will create both jobs in America and in China and bring prosperity to both.

It is nothing less than a modern example of Adam Smith's manifestation of prosperity inherent to capitalism.
08:49 PM on 01/24/2011
Cars made in China and sold to the Chinese only increases the profits of GM, it doesn't significantly add workers in the US. And as we've seen, corporate profits are not translating into more jobs, they are simply reinvested into China and other emerging markets thus largely bypassing the US
10:03 PM on 01/24/2011
Boy are you naive. China is not playing by the rules of free trade and the US Government is doing nothing about renegotiation all free trade agreements to make them fair and balanced to the USA.

You call that a modern example of prosperity inherent to capatalism. I call it stupidity on the part of USA legeslators that have robbed Americans of earning livable wages in the manufacturing sector. The Adam Smiths economists that preached tthat the USA can subsist on a service economy and allowed 39 million USA manufacturing jobs to be outsourced were wrong. Obama promised when he ran for election that he would renegotiate all so called free trade agreements has done squat about it and that is why he lost the election and US workers lost two years because of inept Legislation that allows countries like China to take advantage of unfair manipulation of their currencies and blocking American made products from being imported into China. They insist on making the product in China and the US allows them to do so because USA legislators are inept lawyers that know nothing about manufacturing.or negotiating trade agreements and lack of understanding on the importance of a long range plan for industry to make products instead of just assembling products made with foreign components imported into the USA tariff free.
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Greyfox01
My shoe knows more than they do.
04:57 PM on 01/24/2011
I sure you tell me why I can't find my comment. I tried to resubmit it, but it keep getting an intersept ..... saying it already been submented. Why can't find it in my comment list box. Greyfox01.
04:32 PM on 01/24/2011
to all you out there we export NO cars to china thier laws WONT allow it....you want to sell cars in China YOU have to make those cars in China
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skyeagle
R.I.N.O.
04:49 PM on 01/24/2011
Apparently you are wrong, Checkpoint Charlie (GPTP) below says that the Buick preium line is imported from the U.S.
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GPTP
09:00 PM on 01/24/2011
OK, we export a few Buick Premiums, because those are low volume products. If and when they become high volume, they will open a plant in China. The trade imbalance is still colossal as the Chinese will accept a few (relative to other production numbers) token imported Buicks under their trade rules, but we say to them, com-on-in to their products without hesitation. Free market?
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skyeagle
R.I.N.O.
09:35 PM on 01/24/2011
GPTP: At 3:08 pm you said that Buick imports its premium line from the U.S> Which is correct??? You make two different assertions.
03:36 PM on 01/24/2011
So the bail out worked? Who would have thought GM will soon be number one..What do the republicans have to say about dat?
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skyeagle
R.I.N.O.
05:00 PM on 01/24/2011
"In mid-December of 2008, Treasury Secretary Hank Paulson stepped in to lend General Motors and Chrysler billions to prevent impending bankruptcy." >>>> I would say the Republicans are very happy seeing as it was their adminsitration that kept GM & Chrysler from going under.
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stryker
06:36 PM on 01/24/2011
Wrong,repubs are still crying about the bailouts. Said they never should have been done. They would rather see hindreds of thousands of US workers on unemployment. Then they culd cut those unemployment benefits. Repubs hate the working class. They always rail about union wages, but never mention anything about the millions given to the CEOs and other management types, the one who really caused the firms to go under. Why is that?
11:13 PM on 01/24/2011
People swear like bailouts were a republican or democrat thing, it would've happened no matter what.
03:25 PM on 01/24/2011
Awesome! Now if we could make them here too! "General Motors plans on selling about 17,300 China-made vehicles in the U.S. in 2011"
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03:20 PM on 01/24/2011
Whats the surprise here? China has the highest growth potential of any country in the world when it comes to automobiles. A country of 1.4 billion who only have been buying cars for the most part over the last 15 years. Of course GM and every other auto maker will find their sells decreasing in their home and rising in China then India
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03:10 PM on 01/24/2011
If our government doesn't back off on regulation and control of GM, the headquarters might just go there too.
04:03 PM on 01/24/2011
Ok, then we may have to bail them out again. If we don't regulate, (and godforbid bailout), people lose jobs.
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04:46 PM on 01/24/2011
They should have not been bailed out and gone bankrupt. We're no better off now than we were before.
09:13 PM on 01/24/2011
China has a communistic government. Their tight regulation over imports doesn't seem to be hurting them economically, does it?