GM Continues to Sell Cars Like Crazy in this Huge Country
General Motors (NYSE:GM) is forecasting declining growth rates this year in Chinese (NYSE:FXI) market, but they seem very pleased nonetheless. Chief Executive Daniel Akerson revealed that the company is estimating 7-10% growth for 2011 compared to 30% in 2010 and 50% in 2009.
Akerson was quoted by Reuters saying, “You can’t have totally unbridled growth in a country evolving as quickly as China.” He continued by saying that the previous years’ large growth was “not all good either” and felt that the estimated growth for 2011 was “very healthy.” General Motors reported September sales of 240,244 in September which is a 15.3% increase from the same month last year.
China’s automotive industry boomed in 2010 with 18 million units sold, but the market is down this year due to expiring government incentives for small car purchases and subsidies for those in rural areas to purchase vans. GM (NYSE:GM) partners with SAIC Motor Corp and FAW Group in its Chinese motor production.
- General Motors Corporation (NYSE:GM): The shares recently traded at $26.34, down $0.11, or 0.42%. Its market capitalization is $41.14 billion. They have traded in a 52-week range of $19.05 to $39.48. Volume today was 14,826 shares versus a 3-month average volume of 14,958,900 shares. The company’s trailing P/E is 5.55, while trailing earnings are $4.75 per share.