GM: China not so great anymore
General Motors (NYSE: GM) was counting on its rapidly growing sales in China to offset its troubles in the U.S. China has become one of the world's largest car markets and most estimates say it will move into first place within four or five years.
To the surprise of many, vehicle sales in China actually dropped in August compared with the same month a year ago.
According to The Wall Street Journal, the head of GM's operations in Asia "cut his prediction for 2008 growth in China's auto market, the world's second-largest after the U.S., to between 11% and 12%, down from the 12% to 15% growth he predicted in March." GM added that it expects the car market in China to grow at a double-digit rate for the next five years.
The future sounds bright for GM, but the present is not so pretty. Even in the most populated country, GM is feeling the loss vehicle sales dropping. Because the GM has been a global company for several decades, I believe they will come out of this is with flying colors. They should have superior cultural intelligence at this point and the numbers will prove it!!!
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