General Motors posts record sales in China
The worlds top car manufacturer General Motors Corp. has posted record first-half sales in China, the worlds number-three vehicle market, and expects 20 percent-plus growth for the year, closing in on Volkswagen AGs lead. The U.S. car maker lost $1.1 billion globally in the first quarter but expects sustained profit from China, its second-largest market, after it sold 308,722 vehicles in January-June, up 18.9 percent from a year earlier, according to a statement released by GMs China Chief Kevin Wale July 5. Wales full-year projection was much more aggressive than an April statement that GM wanted to keep pace with the markets expected 10 to 15 percent expansion. Its natural for margins to compress as markets get more mature and more competition comes in. Its our responsibility to find ways to offset that, Wale said. Despite roaring growth that still leads much of the world, analysts say margins in Chinas auto market have been eaten away by price cuts, high steel prices and cutthroat competition.