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Discussion Starter · #1 · (Edited)
BEIJING: US auto giant General Motors (GM) will invest a whopping $14 billion in China over the next five years and open five new plants to increase sales to nearly five million vehicles in the world's largest car market, its top executive said.


The company's plans for China also includes introducing 60 new models or refreshed vehicles, including nine new models from GM's flagship luxury brand Cadillac.

The company's plans for China also includes introducing 60 new models or refreshed vehicles, including nine new models from GM's flagship luxury brand Cadillac, GM CEO Mary Barra said.

"This is a substantial investment in China," Dunne was quoted as saying by state-run China Daily.

"GM is still among the forefront in China in terms of annual vehicle sales volume, and when people look at GM [in China] everyone is expecting vehicle sales to grow there.

"GM is still among the forefront in China in terms of annual vehicle sales volume, and when people look at GM [in China] everyone is expecting vehicle sales to grow there.

Competitors in the market are not standing still, so everyone is kind of on an accelerated pace," Dunne said.

GM was one of the first companies to establish an R&D (research and development) centre in China, so developing vehicles specifically for the China market has also given GM a bit of cachet with different entities in China, Dunne said.

"GM and its competitors are investing in manufacturing, distribution, marketing and the R&D aspect, and China is a hyper-competitive market so you can't let up because things can change very quickly," he said.

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China Top 10 best car sales August.
1 GM Wuling Hongguang 56,502
2 VW Lavida 34,763
3 GM Wuling Rongguang 33,481
4 Ford Focus 28,305
5 VW Sagitar 25,717
6 Haval H6 25,710
7 VW Santana 24,541
8 VW Jetta 23,891
9 Hyundai Elantra Langdong 22,982
10 GM Wuling Sunshine 22,779

GM Wuling brand is king of kool in China

No1 GM RWD Wuling Hongguang 56,502 sales http://***********.com/blog/wp-content/gallery/wuling-hong-guang-business-vehicle/wuling-hong-guang-1.jpg
RWD boxy Wuling Hongguang is No1 their Ford F-Series winner sales king in China bumping up GM sales numbers in China.

No 3 GM RWD Wuling Rongguang 33,481 sales

GM's No2 Chinese best seller is a RWD boxy Wuling Rongguang king of Chinese kool people Carrier.


GM's No3 Chinese best seller is a RWD boxy Wuling Sunshine

No10 GM RWD Wuling Sunshine 22,779 sales

Good to see GM's Wuling brand knocking a few VWs off the Chinese top 10 in August. RWD Caddy should is gonna very popular in China, 9 new Caddy models on the way wow. I hope Barra gets more of these trusty RWD Wulings out to India.
 

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I got a question on GM China, which is essentially 50-50 joint venture more or less. Is only GM putting $14 Billion in or is their "partner" putting in the other $7 Billion?
 

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I got a question on GM China, which is essentially 50-50 joint venture more or less. Is only GM putting $14 Billion in or is their "partner" putting in the other $7 Billion?
Also what are the margins on sold vehicles going to be so we can then figure out how many years for a ROI.
N/A operations made that profit in less than 2 years.
 

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That's putting quite a few eggs in one basket, especially considering the pro-democracy attitude that's starting to make the Chinese government nervous.
 

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This is an investment over 5 years with an average being 2.75 billion a year for the 5 year period.

Considering that GM has been selling more vehicles in China then in the US and profits in the US far out strip those in China I would say that the margins are small. It is probably the case where margins are big on the luxury items (which is why luxury car makers are making a made dash for China). However for mainstream cars buying habits and money spent on cars on average in China isn't enough to support higher margin vehicles. Though they are hoping/gambling that in the near future those margins will go up. Really only time will tell on what will happen in China...
 
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