GM China Sales Up 9.4% in May image

GM reported sales in China up 9.4% in May, thanks to increased demand for Buick vehicles.

Last month GM sold 252,942 units, up 9.4%, after a decrease of 15% in April. The best selling vehicles were the Buick ones, with sales increasing 23% to 63,007 units. Chevrolet sales were up 4.1% to 50,531 units and Cadillac rose 74% to 3,843 units, thanks to the XTS sedan and the SRX crossover.

GM is struggling to keep sales up and to consolidate its position as the largest foreign automaker in China, having VW quickly coming from behind. During the first quarter GM managed to outsell VW for the first in the past three quarters.

Two months ago GM announced it plans to build four new facilities in China by 2015 to reach a product capacity by 30% to 5 million vehicles annually. GM aims at grabbing more market share in the luxury and SUV segments and for this it will build four new assembly plants and four powertrain plants. The company will add 6,000 jobs in the region, according to Bob Socia, head of GM China. GM and its JV partners will invest $11 billion in China by 2016.

Source: Bloomberg