The economic slowdown in China is being felt by General Motors Corp.'s passenger vehicle joint venture. Shanghai General Motors Corp., the crippled giant's joint venture with SAIC Motor Corp., on Monday posted a 7% drop in 2008 sales. Overall, GM sales in China rose 6% in 2008, carried by sales from its commercial vehicle JV with SAIC and Wuling Automobile Co. Still, the growth is down sharply from the 18.5% and 32% increases posted in 2007 and 2006, respectively, reflecting declining demand in China.
The disappointing sales numbers don't mean GM is gearing down in China. On Dec. 17, the company announced that Shanghai General Motors was
opening a new plant in Shenyang, China, that would boost production by 150,000 units a year. And in a statement on the 2008 sales growth, Kevin Wale, president of GM China, said the company expects sales in China to remain steady in 2009, but that the country will remain a global leader in auto demand over the next decade.
- Suzanne Stevens
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