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China to boost GM back to No.1?

2011-05-06 08:04

MADE IN CHINA: Vehicle sales in China rose by more than 32% in 2010 to 18.04m units.

General Motors, less than two years after declaring bankruptcy, looks set to topple Toyota as the world’s vehicle sales leader.

Toyota’s reliability recorded was rocked by a wave of recalls through 2009 and 2010 while the March, 2011 earthquakes (and subsequent tsunami) off the coast of Japan has left the automaker facing serious supply issues. A stronger yen is also affecting its profits.

It is reported that Toyota has lost production of about 500 000 cars since the disasters of March 11 and the company’s production in Japan isn’t expected to recover before November 2011.


GM, on the other hand, is experiencing a boom in China, where the US company has plans to invest $5bn (roughly R33.25bn) to double its sales by 2015 to five-million units.

While Toyota has been slow to invest in the world’s fastest-growing car market, GM has won over the locals with its more affordable Chevrolet models. The US carmaker is also starting a China-only brand of low-cost vehicles with its Chinese joint venture partners.

In 2010, GM sold about 8.39 million vehicles, whereas Toyota gained the advantage by selling 8.42 million units. However, Germany’s Volkswagen also has its eye on the global sales prize, saying it aims to beat both GM and Toyota to 10 million unit sales by 2018.


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