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GM plans to export China-made cars to U.S.
With this year's rebound in auto sales continuing, the China Association of Automobile Manufacturers (CAAM) expects total vehicles sales for 2009 will grow 8.7 percent year-on-year to 10.2 million units.
Sales of passenger vehicles for the year, meanwhile, are expected to reach 7.45 million units; up 10.2 percent from 2008.
The global downturn caused auto sales growth for 2008 to slow to 6.7 percent, ending years' of double-digit expansion.
Thanks to a halving of purchase tax in January on cars with small engines, passenger vehicle sales have been strong so far this year.
Sales of micro cars have grown fastest. In the first four months of the year, sales in the segment surged 43.3 percent from a year earlier to 602,700 units.
Sales in other segments have been weaker. In the same period, sales of sedans increased 10.4 percent to 200,700 units while those of SUVs rose 6.7 percent to 150,800 units.
MPVs were the only segment to record a sales drop. Only 66,200 MPVs were sold across China in January to April, down by 12.4 percent year-on-year.
Due to slumping exports and slowing domestic consumption, China's value-added industrial output only grew 5.1 percent in the first quarter, down by 11.3 percentage points.
Affected by a slowdown in the growth of domestic industry, commercial vehicle sales dropped 3.9 percent from a year earlier to 100,520 units in the first fourth months.
The CAAM expects the domestic industrial sector to recover later this year. It predicts that commercial vehicle sales will climb 5 percent year-on-year to 2.75 million units.
General Motors plans to sell cars in the United States that it makes in China, starting in 2011. That could make GM the first major automaker to import Chinese cars to the U.S. market.
The car maker expects to sell about 17,335 of the China-made vehicles in the United States in 2011, and triple that number to 51,546 in 2014, a planning document circulated by GM among U.S. lawmakers shows.
The gains would come, the document says, as GM's total U.S. sales surge 50 percent in the next five years.
The plans are subject to change pending the outcome of negotiations with the UAW.
Many of these vehicles are likely to be small cars similar to the upcoming Chevy Spark, which will be built in South Korea, though the models will be different from any currently built in the United States by any automaker, an industry official said in an interview.
Even at the higher 2014 level, though, cars from China would still account for only 1.6 percent of GM's 3.1 million total expected sales in the U.S. that year, the 12-page document says.
The automaker is trying to meet a government-imposed June 1 deadline to restructure operations and cut over $40 billion in debt, or risk bankruptcy.
The UAW has criticized GM's restructuring plan because of increases envisioned by the plan in U.S. sales of cars made overseas.
"We are in dialogue with the UAW, and my view of a dialogue is that it is a good idea to have an open book on all the different subjects," GM CEO Fritz Henderson said in a media conference call today. "We have a philosophy of building where we sell, and not only do we think that is the right thing to do, but the most profitable thing to do historically."
UAW officials did not immediately respond to requests for comment.
In a May 5 letter to senators, the UAW criticized GM plans to increase U.S. sales from other countries.
"GM should not be taking taxpayers' money simply to finance the outsourcing of jobs to other countries," the letter from UAW legislative director Alan Reuther said.
The GM document also reveals plans to sharply increase sales of cars it makes in Mexico and South Korea while reducing the number made in Canada.
Mexico-made vehicles sold in the United States would jump from 317,763 in 2010 to 501,316 in 2014, according to the document.
South Korea-made vehicles sold in the United States would more than quadruple from 36,967 in 2010 to 157,126 in 2014.
On the other hand, Canada-made vehicles would fall from 431,708 in 2010 to 330,610 in 2014.
GM's U.S.-made vehicles would hold steady during the five-year period at about two-thirds of the total sold domestically.
Sales of passenger vehicles for the year, meanwhile, are expected to reach 7.45 million units; up 10.2 percent from 2008.
The global downturn caused auto sales growth for 2008 to slow to 6.7 percent, ending years' of double-digit expansion.
Thanks to a halving of purchase tax in January on cars with small engines, passenger vehicle sales have been strong so far this year.
Sales of micro cars have grown fastest. In the first four months of the year, sales in the segment surged 43.3 percent from a year earlier to 602,700 units.
Sales in other segments have been weaker. In the same period, sales of sedans increased 10.4 percent to 200,700 units while those of SUVs rose 6.7 percent to 150,800 units.
MPVs were the only segment to record a sales drop. Only 66,200 MPVs were sold across China in January to April, down by 12.4 percent year-on-year.
Due to slumping exports and slowing domestic consumption, China's value-added industrial output only grew 5.1 percent in the first quarter, down by 11.3 percentage points.
Affected by a slowdown in the growth of domestic industry, commercial vehicle sales dropped 3.9 percent from a year earlier to 100,520 units in the first fourth months.
The CAAM expects the domestic industrial sector to recover later this year. It predicts that commercial vehicle sales will climb 5 percent year-on-year to 2.75 million units.
General Motors plans to sell cars in the United States that it makes in China, starting in 2011. That could make GM the first major automaker to import Chinese cars to the U.S. market.
The car maker expects to sell about 17,335 of the China-made vehicles in the United States in 2011, and triple that number to 51,546 in 2014, a planning document circulated by GM among U.S. lawmakers shows.
The gains would come, the document says, as GM's total U.S. sales surge 50 percent in the next five years.
The plans are subject to change pending the outcome of negotiations with the UAW.
Many of these vehicles are likely to be small cars similar to the upcoming Chevy Spark, which will be built in South Korea, though the models will be different from any currently built in the United States by any automaker, an industry official said in an interview.
Even at the higher 2014 level, though, cars from China would still account for only 1.6 percent of GM's 3.1 million total expected sales in the U.S. that year, the 12-page document says.
The automaker is trying to meet a government-imposed June 1 deadline to restructure operations and cut over $40 billion in debt, or risk bankruptcy.
The UAW has criticized GM's restructuring plan because of increases envisioned by the plan in U.S. sales of cars made overseas.
"We are in dialogue with the UAW, and my view of a dialogue is that it is a good idea to have an open book on all the different subjects," GM CEO Fritz Henderson said in a media conference call today. "We have a philosophy of building where we sell, and not only do we think that is the right thing to do, but the most profitable thing to do historically."
UAW officials did not immediately respond to requests for comment.
In a May 5 letter to senators, the UAW criticized GM plans to increase U.S. sales from other countries.
"GM should not be taking taxpayers' money simply to finance the outsourcing of jobs to other countries," the letter from UAW legislative director Alan Reuther said.
The GM document also reveals plans to sharply increase sales of cars it makes in Mexico and South Korea while reducing the number made in Canada.
Mexico-made vehicles sold in the United States would jump from 317,763 in 2010 to 501,316 in 2014, according to the document.
South Korea-made vehicles sold in the United States would more than quadruple from 36,967 in 2010 to 157,126 in 2014.
On the other hand, Canada-made vehicles would fall from 431,708 in 2010 to 330,610 in 2014.
GM's U.S.-made vehicles would hold steady during the five-year period at about two-thirds of the total sold domestically.
