Sunday, July 4, 2010

China Motors

This China GM picture is probably a joke, but it is a great image anyway. Don't you love the look on the old man's face and how it is framed by the truck cab.

GM sells more cars in China than in the USA. GM and its joint-ventures sold 1.21 million cars in China through June 30, and it sold 1.08 million cars in the US.

My headline is a little disingenuous, because it includes the SAIC-GM company which GM only owns 1/3 of.

This is interesting because it reinforces that China is huge country, and that countries in the midst of their industrial revolution get huge productivity gains from mechanizing agriculture and shfting labor into manufacturing. Because of the huge population in China, it will be an big fraction of the world economy. GM expects their car sales in China to grow to 3 million.

China's car market grew 46% to 13.6 million to be the largest in the world, as US car sales fell 21% to 10.6 million. Of course the US car sales fall was propelled by the Great Recession.

This reminds me of the Japanese maker Honda who sells more cars in the US than in Japan.