GM (GM) Wants to Unseat Luxury Rivals in World's Largest Auto Market

December 18, 2012 9:26 AM EST Send to a Friend
General Motors (NYSE: GM) doesn't just want a piece of China's luxury auto market...it wants the whole thing!

To that end, GM is planning on expansion of its Cadillac dealerships in China as it looks to grab more market share from the likes of Volkswagen's Audi , Daimler's Mercedes-Benz, and BMW. The company plans to open about 40 new dealerships next year, increasing its total network by 25 percent to 200 dealerships.

In total, GM is also looking to open 400 more showrooms across all of its brands in China, a 10.5 percent boost over the 3,800 currently in operation.

Bloomberg notes this morning that GM CEO Dan Akerson is looking to bolster the presence of Cadillac globally in an effort to hedge against declining sales in higher-margin trucks.

Cadillac sales hit 27,073 units in 2012 through November, a far cry from the 370,559 units sold by Audi, 295,975 units sold by BMW, and 177,301 units from Mercedes-Benz.

Total vehicle sales in China are expected to reach 21 million units next year, compared with about 14 million to 15 million expected for the U.S.

Shares of GM are up 0.3 percent early Tuesday.


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