FranceWeb,e-GlobalNetWork®, Human Network, Serving the Planet with Breaking News, News search engine, "Know where to find the information and how to use it - That's the secret of success"

Automakers See China as an Engine for Growth

Earlier this month, General Motors declared that one of its joint ventures had achieved a major milestone. The joint venture, according to GM, had become the first passenger-car manufacturer to achieve annual sales of 1 million vehicles in the world's largest automotive market.

The joint venture is Shanghai GM. The world's largest auto market: China.

After a decade of consistent year-over-year growth, China seized the No. 1 spot from the United States in 2009, as the nation's vehicle sales reached 13.6 million units.

Meanwhile, vehicle sales in the United States, according to WardsAuto.com, plummeted to 10.6 million units in 2009—the lowest total since 1982.

No automaker outside China has benefited more from China's turbocharged auto market than GM, which outsells all overseas competitors through its two joint ventures there. But make no mistake: Every major automaker is angling for a slice of the pie in China.

"There isn't a single automotive company or major supplier that we talk to that isn't putting a lot of attention on China," says Craig Giffi, vice chairman and U.S. automotive practice leader for Deloitte LLP. "I can't tell you who for sure is going to come out on top, but I can tell you that they're all upping their game" [in the Chinese market].

A strong December will push U.S. vehicle sales to nearly 11.6 million units in 2010, J.D. Power and Associates estimated in a mid-December report.

An article in the China Automotive Review projected that vehicle sales in China could reach 18 million units this year.