- Title: CHINA: General Motors to add over 20 new upgraded models in China
- Date: 16th February 2011
- Summary: BEIJING, CHINA (FEBRUARY 15, 2011) (REUTERS) (SOUNDBITE) (English) GENERAL MOTORS CHIEF EXECUTIVE DANIEL AKERSON SAYING: "China is a unique market sitting in what I think is probably the highest growth area over the next 10, 20, 30 years - that being Asia, and China being the epicentre of that growth. So when you ask, is there a conscious decision, I would say indeed there is."
- Embargoed: 3rd March 2011 02:11
- Location: China, China
- Country: China
- Topics: Industry,Transport
- Reuters ID: LVA3NDPFGU0GULOLGFAIG5DLH6AU
- Aspect Ratio: 4:3
- Story Text: General Motors (GM) will add over 20 new and upgraded models in China, its CEO announced in Beijing on Tuesday (February 15), as the U.S. automaker looks to use its leading position in the world's biggest car market to reclaim its position as the top global carmaker.
GM is the largest overseas automaker in China, where it operates auto manufacturing ventures with state auto groups SAIC Motor and FAW Group. It lost the top global automaker spot to Toyota in 2007.
GM's Chief Executive Daniel Akerson hailed China as GM's "crown jewel", saying the company's sales profits in China have entirely funded their China-based research and development operations.
"This is a self-sustaining business model and I think that is great news for the corporation. I wish it were true across the globe - it's not. Best example would be Europe, because of similar comments I made before. But China is clearly a crown jewel in the GM universe," he said.
The company broke its domestic sales record in January, reporting a 22.3 percent increase in sales over the last year, China's official English-language newspaper reported.
Global industry giants have in the past two years racked up eye-popping sales in China, where growing national wealth has pushed auto sales to record highs.
Akerson didn't specify what models GM would add in China but said the company would focus on the market in the years ahead.
"China is a unique market sitting in what I think is probably the highest growth area over the next 10, 20, 30 years - that being Asia, and China being the epicentre of that growth. So when you ask, is there a conscious decision, I would say indeed there is," he said.
But China's booming car market may soon face new hurdles as Beijing and other big cities tackle traffic gridlock and the government scrapped most of its auto incentives at the end of 2010.
The once-booming market is settling into a more rational growth pattern of 10-15 percent this year and Beijing has imposed quotas on new car registrations, an attempt to regulate the amount of new vehicles hitting the roads which may well be adopted by other cities.
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