GM reiterates China business not affected by revamp plan

GM reiterates China business not affected by revamp plan
Apr 5, 2009 15:52
COOLSPRINGS Points: Join Date: May 19, 2008 Status: offline	source: Shanghai Daily GENERAL Motors Corp, which pledged to cut additional jobs and sell some of its brands as it tries to seek more United States government bailout funds to avoid bankruptcy, said its business in China would not be affected by its restructuring plan. The US car maker reiterated the importance of the Chinese market in its global strategy and said business and key projects in China would continue to proceed as scheduled. "With expanding vehicle sales in China, GM remains profitable, which helps us to support the development of new programs and business with self-funded capital," GM China said in a statement. It was made after earlier media reports said GM would sell stakes in its major Chinese passenger car ventures to ease its tight liquidity followed by plans to launch new models. GM said five new models will be launched under its Chevrolet and Buick brands in China within two years. By the end of this year, more than 13 new models will be launched including the new Buick Regal and Chevrolet Cruze mid-class sedan, which will boast better fuel economy. The product upgrades would also cover other brands including Cadillac, Opel, Saab and those of its minivan affiliate Wuling. GM also said construction of its 2-billion-yuan (US$292 million) test drive center and the US$250-million GM Campus, which will house its China and Asia Pacific headquarters, would proceed as scheduled. Although sales cooled, China's auto market has not plunged - unlike some others overseas. In fact it became one of the few markets to help GM battle against a global sales slump. GM said it sold 111,282 units in China in January, a rise of 3.3 percent. Last year its sales expanded 6 percent in China, the slowest pace since 2000.

Apr 5, 2009 15:52

COOLSPRINGS
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source: Shanghai Daily

GENERAL Motors Corp, which pledged to cut additional jobs and sell some of its brands as it tries to seek more United States government bailout funds to avoid bankruptcy, said its business in China would not be affected by its restructuring plan.

The US car maker reiterated the importance of the Chinese market in its global strategy and said business and key projects in China would continue to proceed as scheduled.

"With expanding vehicle sales in China, GM remains profitable, which helps us to support the development of new programs and business with self-funded capital," GM China said in a statement.

It was made after earlier media reports said GM would sell stakes in its major Chinese passenger car ventures to ease its tight liquidity followed by plans to launch new models.

GM said five new models will be launched under its Chevrolet and Buick brands in China within two years.

By the end of this year, more than 13 new models will be launched including the new Buick Regal and Chevrolet Cruze mid-class sedan, which will boast better fuel economy.

The product upgrades would also cover other brands including Cadillac, Opel, Saab and those of its minivan affiliate Wuling.

GM also said construction of its 2-billion-yuan (US$292 million) test drive center and the US$250-million GM Campus, which will house its China and Asia Pacific headquarters, would proceed as scheduled.

Although sales cooled, China's auto market has not plunged - unlike some others overseas. In fact it became one of the few markets to help GM battle against a global sales slump.

GM said it sold 111,282 units in China in January, a rise of 3.3 percent. Last year its sales expanded 6 percent in China, the slowest pace since 2000.

Apr 5, 2009 15:56	#1
MARRIE Points: Join Date: Jan 7, 2008 Status: Offline	A friend of my family who works in engerneering center in car center, Detroit said that in 4 year, brand new designed GM will beat Japanese cars in world wide market.

Apr 5, 2009 20:57

GARYKINKADE
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Join Date: Jan 8, 2008
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Our corporate controlled and simple simon taxpayer financed government has already
doled out $14.3 billion to GM.

I'm sure a large portion of this has found it's way to the Chinese manufacturing plants where
labor and materials are much lower. I can't claim this is a fact but am guessing that it is.

Meanwhile, back at the ranch (U.S.A.), GM continues to downsize thru plant closings, employee
layoffs, pension compromises, etc., etc.

A smart move by GM and a not very smart move by we common people in letting the
politicians and corporate honchos get away with this.

A lot more could be said of the ilks of TARP, derivatives, and the financial sector following
the same "mind set" but that is another story unto itself. Besides...I ain't that smart.

Apr 7, 2009 23:24	#3
COOLSPRINGS Points: Join Date: May 19, 2008 Status: Offline	<<Meanwhile, back at the ranch (U.S.A.), GM continues to downsize thru plant closings, employee layoffs, pension compromises, etc., etc.>> This is inevitable. The hidden but significant issue exposed thru this crisis. the suppliers of GM and other big 2s is outsourcing to China and then in North Am,they just create QA report the products from China, The results of report data are just perfect. The head got the majority bonus (profits) from the cheap but qulified project but what left to those poor labors? Here is a true story, when QA mgt got perfect QA report data of the auto products from China , he left the office, the underlying meaning is that you guys can do whatever you want to the products from china if you really want to keep your jobs. Although I am Chinese who lives in North Am. I really don't want to see US is loosing ground in its base industy and the first step is business lean.
COOLSPRINGS Points: Join Date: May 19, 2008 Status: Offline	Last edited by COOLSPRINGS: Apr 7, 2009 23:31

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