What crisis? GM China sales up 6% in 2008

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Whilst US sales may be heading south, it appears that Shanghai GM, GM’s China arm, is doing exceptionally well when compared to its American arm. GM China sold an impressive 1.09 million cars in the PRC during 2008 giving its sales figures a 6% boost over 2007, however, sales may flatten or drop in 2009 as Chinese consumers tighten their belts during the oncoming economic down turn.

GM has put high hopes on the Chinese market place, and other developing markets, to offset heavy losses in the North American market during 2007 and 2008.

GM has worked very hard to become one of the top players in the Chinese market place, with it setting up 8 joint ventures in China, and also tailoring certain cars for the Chinese market. Cars such as the Cadillac CTS sedan have improved rear leg room, as many buyers have drivers to drive their cars for them, and buy the car primarily for the comfort and luxury factor.

Experts are predicting that Chinese auto sales will grow by a respectable 8% in 2009, but far from the boom days of 2007 where car sales increased by an impressive 22%. GM should be able to improve in 2009, with the launch of new cars such as the new Buick Regal, a new Lacrosse, and the Enclave SUV. Chevrolet also plan to launch the Cruze shortly.

Ford and VW’s 2008 sales statistics are to be announced soon.