After declaring a surge in April China sales, General Motors opened strongly at $31.31 before settling at $31.38, an increase of 0.27 percent during the recent trading session.
The American multinational corporation reported 277,979 sold vehicles in China for the month of April, an increase of 7.5 percent, amid the narrow growth of the economy in China. The company and its Chinese partners sold 1,241,631 units from January to April, higher by 1.7 percent from the same months in 2015.
Matt Tsien, President of GM China, said that GM continues to grow in segments that are on top of customers’ purchase list. He also added that they have more vehicles on the way in the SUV, MPV and luxury segments.
Strong demand of GM’s SUV
In terms of the fourth-month sales of the General Motors, the company has accumulated 1,241,631 units in China, up by 1.7 percent compared to the sales gathered from January to April 2015. Currently, the automaker has a market capitalization of 47.76 billion and a price earnings ratio of 4.7.
The upbeat report of the company was driven by the strong demand of SUV’s. Buick, the best selling brand in China, made 56 percent climb to 98,992 units as the interest for the Envison SUV and the Excelle GT sedan has remained.
Aside from the mentioned units, the company has indicated the arrival of a plug0in hybrid version of the mid-sized sedan LaCrosse in the market in a short time.
Moreover, sales of Cadillac increased 13 percent to 7,007 units as the new CT6 sedan became available in the market and after the launching of XT5 last month. Last January, CT6 went on sales while XTD has been delivered to the interested customers across the region of China since April.
After Chevloret announced the coming of the new models before the year ends, sales declined 29 percent to 35,431 units. Also, Wuling had a drop of 14 percent to 98,580 units as the demand for small sized commercial vehicles contract.
On the other hand, sales of Baojun increased 56 percent to 37,915 after the positive performance of the Baojun 560 SUV A and the Baojun 730 MPV. Recently, General Motors confirmed the availability of Baojun 310 hatchback this summer.
Elsewhere, the sales of Ford dropped 11 percent in April as the demand for the commercial and passenger units slipped. Ford was able to beat GM in unit sales improvement last March.
GM’s production being moved
In other news, General Motors was reportedly moving the production from Mexico to Michigan in 2017 as the company faces criticisms from the politicians and from the United Auto Workers.
Dennis Williams, UAW Union President, criticized the automotive juggernauts and claimed that these companies could not accumulate profit from the vehicles made in the United States. Williams highlighted in his statement the importing of GM’s Envision made from China and called it as “En-vasion”
The Flint Assembly of GM in Michigan produces around 170,000 Chevrolet Silverado and GMC Sierra trucks with almost 3,000 employees. In Mexico, the labor is much cheaper and the automotive parts suppliers increase alongside with the smooth trade transactions. Honda, Volkswagen and Toyota are just some of the automakers, which has been investing in Mexico lately.
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