GM Fumbling The Ball In China As Customers Move To Other Brands

General Motors reported a second consecutive month of sales declines in China, its largest market, despite cutting prices on 40 models across its Buick, Chevrolet and Cadillac brands.

GM and its China joint ventures sold 252,567 vehicles in May, a drop of 4 percent from a year earlier, according to a statement on its website. The decline was mainly due to a changeover and phasing out of older models, the company said.

Foreign automakers have come under increasing pressure in China as economic growth slows in the world’s largest auto market and local brands gain market share by offering cheaper SUVs. Passenger-vehicle sales rose at the slowest pace in five months in April, with most of the expansion coming from local brands.

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TheSteve - 6/4/2015 12:35:37 PM

+2 Boost

I don't live in China. Never even been there. But my thinking is if someone is looking for a cheap people mover, then they have their own, cheaper Chinese vehicles. If they're affluent, then they're likely looking at more upmarket brands, like BMW, Mercedes, Lexus, Audi, Porsche, etc.

I believe that, for the most part, GM appeals to people who feel it's important to support their neighbors by buying the products they make. GM does make some noteworthy exceptions, like the 'Vette.

carsnyc - 6/4/2015 2:56:51 PM

+1 Boost

It was just a matter of time. Chinese are exposing themselves more and more to the west world (have you seen them touring NYC or Paris in hordes lately?); and after those trips they go back home and say: ...The heck am I doing driving a Buick?

TomM - 6/4/2015 3:26:15 PM

+2 Boost

In China = a Buick is considered completely differently than in the USA - as a desired status symbol. Many consider them more desirable than the Germans or Cadillac.

This past couple of months - Ford has had a decrease in sales in the USA - and they say it is because of the changeover of the F-series. I don't see you pointing at them and saying that they are fumbling.

While it is possible that the cheaper chinese based brands are increasing their market - Chevrolet did indeed have changeovers of the Chevy Cruze - and the Malibu - and just as in the USA - when they have to re-tool the factories - production goes down temporarily.

HughJass - 6/4/2015 4:02:57 PM

+2 Boost

Someone probably told them that we think Buick sucks so they're moving to whatever brands the West favours. Also doesn't help when they can't get a Chinese clone for less than half the price.

USNA1999 - 6/5/2015 8:55:26 AM

+2 Boost

Not sure what has happened in the last 2 years since my last visit to China. But Chinese due consider Buick as a premium brand and it was selling very well. I believe it was #2 after AUDI. It seemed that Buick was the preferred American brand. As for other premium brands, AUDI reigned supreme.