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Marking 100 years, GM says China crucial to its future
Shanghai (AFP) Sept 16, 2008 General Motors marked its 100th anniversary Tuesday, saying its future lay in China as it broke ground on a research facility that will develop hybrid and electric cars for the Chinese market. The 250-million-dollar complex, expected to open by the end of next year, will be home to a research centre for developing alternative fuels and cleaner cars, GM Asia Pacific President Nick Reilly said. It will also serve as GM's Asia-Pacific headquarters. The centre aims to employ about 1,500 scientists researching hybrid and electric cars, lightweight materials and how to make vehicle manufacturing more energy efficient, Reilly said. "We'll develop things for GM worldwide here, not only for the Chinese market," Reilly told reporters at a ceremony. China is GM's largest market after the United States. Through joint ventures with Chinese companies, it led the market with more than one million vehicles sold last year -- followed closely by Volkswagen, which sold about 910,000. China's July and August car sales were weaker than expected but Reilly said he expected the slowdown to be a temporary one attributable to rising fuel prices, a falling stock market and the Beijing Olympics. He said he expected growth in China this year to be around 11 to 12 percent and for growth to remain between 10 to 15 percent for the next five years. "The underlying growth in demand is clear to see," he said. "It's not just in tier-one cities, it's growing even more in tier-two, three and four cities. I would expect that to come back this month, or next, to resume double-digit growth." He predicted China would be the world's biggest car market within four to six years, contrasting it to the United States and Japan, where sales are expected to increase only one or two percent annually over the next decade. "It's going to be essential to be a strong player here," he said. In addition to the new facility, GM and its Chinese partner, Shanghai Automotive Industry Corp., has set up an automotive fuel research centre at Beijing's Tsinghua University to help China reduce its reliance on oil. To further bolster its green credentials, GM this year released a hybrid version of its Buick LaCrosse sedan in China. Reilly said the hybrid LaCrosse had not sold in huge numbers but it was still "very early days." He expressed hope that Beijing might follow other governments and offer motorists incentives to encourage them to buy hybrids. "China has a significant concern of its dependency on oil as a country, therefore we would expect their policies in future to make it more favourable to use alternative energy cars," he said. GM's Buick is one of the best-known cars in China, with more than 1.7 million owners, according to GM. The name plate has a strong history in China: revolutionary leader Sun Yat-sen and Pu Yi, the last emperor of China, both owned Buicks, according to the company. Community Email This Article Comment On This Article Share This Article With Planet Earth
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China passenger car sales in first fall for more than three years
Shanghai (AFP) Sept 9, 2008China's passenger car sales fell last month from a year earlier, an industry group said Tuesday, the first monthly drop since early 2005 as the economy slowed and the Olympics deterred car purchases. |
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