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Mayank Marwah
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General Motors Posts a Decline in 4th-Quarter China Sales

Except Cadillac, all major brands posted quarterly decline in China

January 08, 2020 | About:

General Motors Co. (NYSE:GM) released its fourth-quarter sales for China on Jan. 7, 2019.

Sales dropped in China compared to the prior-year quarter owing to several factors, such as a slowing economy and the ongoing U.S.-China trade war.

For 2019, the company’s China sales plunged 15.1% to approximately 3.1 million vehicles as compared with 2018.

GM China president Matt Tsien said the company is slated to experience a further sales slump in 2020.

How did the brands perform?

All of the company’s major brands failed to register sales growth in China, with the exception of Cadillac. This marked the sixth consecutive quarter of sales decline for the company in the world’s hottest car market.

Buick sales fell 15% in the fourth quarter to 226,954 units. The company has now strengthened its crossover presence in China by the introduction of the all-new Enclave large SUV in November.

Chevrolet sales in China plummeted 29.1% to 101,363 vehicles. In an effort to strengthen its SUV presence in China, the brand rolled out Tracker and Trailblazer.

Baojun sales crumbled 13.3% to 180,196 units in the fourth quarter.

Wuling sales stood at 276,200 units, which reflected a decline of 5.2% year over year. The brand introduced the all-new Hong Guang PLUS to the Hong Guang MPV family in October last year.

Cadillac was the only brand to report sales growth. Cadillac deliveries came in at 51,461 units in the reported quarter, up 7.8%. Later this year, the company will launch the CT4 compact luxury sedan in China in order to reinforce its foothold in the growing luxury segment.

Conclusion

China is General Motors’ top-selling car market. For years, the company has relied on China to generate profits in a view to offset declines in other markets. In fact, the China auto market has become more important for the company in the recent years, given it has cut ties with Europe, Russia, India and several other nations.

The number one U.S. automaker rolled out more than 20 new and rejuvenated models in China in 2020. In order to strengthen its position in China, the company plans to keep up its launch cadence across brands in 2020.

Disclosure: I do not hold any positions in the stocks mentioned.

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About the author:

Mayank Marwah
A seasoned writer with keen interest in the automotive, technology, telecommunication, retail and aerospace sectors.

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