Strong Global Sales for GM Could Face Challenges
The biggest news about GM’s strong global sales would be the flip-flop between China and the United States as the number one and two markets in 2010. China saw growth of 28.8 percent, while the U.S. saw a more sluggish growth rate of 6.6 percent.
Nariman Behravesh, chief economist at I H S Global Insight, the economic forecasting firm, speaking to the Wall Street Journal in advance of the World Economic Forum next week in Davros, Switzerland, said the Chinese real estate market is poised to pop its bubble. Does that sound familiar to what happened in the U.S.? That implosion in market values could diminish the Chinese ability to buy new cars.
There were also rallies in India last week over rising fuel prices. India is not a top 10 market yet for GM, but Chevrolet sales there did crack 100,000 for the first time in 2010.
Attention also has to be paid to the struggling European market that is seeing some recovery after a devalued Euro and countries struggling with heavy debit like Greece. A rebounding Euro could help boost sales in Western Europe.
Here is the breakdown of the Top 10 Markets for GM sales globally
Market Units Sold Percent Change
- China 2,351,610 28.8
- United States 2,215,227 6.3
- Brazil 657,825 10.4
- United Kingdom 290,250 1.0
- Germany 269,061 (29.5)
- Canada 247,104 (2.8)
- Italy 169,955 (9.9)
- Russia 159,199 12.4
- Mexico 155,590 12.4
- Uzbekistan 145,151 41.3