General Motors U S Automakers Betting On China Auto Market General Motors… — Volkswagen 2017

21 Фев 2015 | Author: | Комментарии к записи General Motors U S Automakers Betting On China Auto Market General Motors… — Volkswagen 2017 отключены
Volkswagen 2017

General Motors: U.S. Betting On China Auto

Summary

China’s automobile seems lucrative to many automakers, including General Ford, Tesla and Volkswagen.

Motors has planned to invest $12 billion in China from to 2017 and bolster its production in the country.

Volkswagen has plans to $25.16 billion in China to its sales to a record level of 3.5 vehicles this year.

Motors aims to bolster its Sedan sales and to launch one per year through 2016.

Motors is striving hard to its lost leading position Volkswagen, while the latter is efforts into maintaining its

China is currently the largest and automobile market in the world, and it is a highly lucrative market for as well as international automakers. the first quarter of 2014, sales in China increased year-over-year, and January 2014 saw sales of 1.85 million that outpaced the yearly volume of India in 2013. is proving itself as a hyper-competitive in the passenger vehicle segment, so automakers are experiencing competitive That may be because of customer for international cars over brands. Nevertheless, China’s vehicle sales volume is to grow at a CAGR of 9.1% 2014 -2017. Last the China Association of Automotive predicted industry-wide sales of 7%. while actual sales up 14% year-over-year. This year, we can actual sales to cruise ahead of estimates. I will be my article on General Motors (GM ) and its to penetrate into the Chinese market and deal with rivalry in the region.

General Motors

General is battered in its home market due to the issues, but the auto giant is about its future prospects in General Motors has 12 joint two wholly-owned foreign enterprises and employees in China. The company more than 30% of its total from China and 60% of its free flows in the form of dividends and received from the country. In General Motors managed to 3.2 million passenger vehicles in up 28% from 2.5 million vehicles in 2011. For 2014, General expects to sell its one-millionth in the country during the 2014 Auto Show. General seems to be on track to exceed year’s set target of 3.2 million sales. General Motors had the sales leader in China for consecutive years, before it was by Volkswagen AG (OTCPK:VLKAF ). Volkswagen was the among international automakers to producing cars in China the 1980s, and has been benefiting its first-mover advantage. It has achieved a penetration in the eastern areas of the that were rapidly like Shanghai and Guangzhou, is why it does not need more there. Now, it has turned its to western areas that previously neglected, and aims to the number of dealerships there by 50% to more than 3600 the next 3 years. According to the CEO, Martin Winterkorn, it is to deliver more than 3.5 vehicles this year, up 3.27 million in 2013, an increase of 7%. The company will 100 new or revamped models throughout the year. Volkswagen aims to its position

as the top-selling foreign brand in with the help of aggressive in the country. Its two venture partners, Automotive Works and Shanghai have plans to spend billion euros through equivalent to $25.16 billion. In Volkswagen is making strides becoming the global industry by 2018 and besting Toyota Corporation (TM ).

To compete with its aggressive in the Chinese auto market, Motors intends to invest $12 in the country over a period of 4 from 2014-2017. Moreover, the next year, the company may be more plants to bolster its facilities in the country. Out of its 5 new plants to be in China, four will be assembly plants, while one be an engine plant.

Volkswagen 2017

According to Tsien, president of GM China, GM is to launch new products under its brand this year, as as next year to bolster the of the Cadillac brand in China. Motors aims to sell units of its flagship Cadillac and one of its new plants will solely Cadillac Sedans. General has a vision that by 2020, Sedans will be the most segment and their sales be around 10 million annually. GM is launching a new Chevrolet Trax and a Chevrolet Cruze compact along with 3 dozen vehicles at 2014 Auto Through 2018, the company to launch 60 new and upgraded vehicles in the

Volkswagen’s spending in China is than double the spending of Motors in the region. Volkswagen’s in 2013 were 1.3 times than the sales made by Motors. Volkswagen has made its stronger in the region than Motors. However, figures to date show that Motors is ahead of Volkswagen in of sales in China during the quarter of 2014. For the first of 2014, General Motors 919,114 vehicles up 13% year-over-year, Volkswagen managed to deliver 880,700 units. According to volume achieved by the two companies January 2014, Shanghai with sales of 199,688 was ahead of Shanghai GM, with of 171,755 vehicles. The coming will clarify the picture for companies’ performances in China.

of the companies are trying hard to market share and maintain leads in this lucrative T he key thing that will the winner will be the customers vote, and to gain that, auto makers have to up with products that can to customers in China. In this the introduction of new models into the with customized features to the local consumers’ taste can the two companies. Product affordability also remain a critical

Final Thoughts

In short, it can be that the fast-growing Chinese market is important for the fortunes of car companies. In fact, China pave the way for global success for auto makers if they are in China. The key thing to look for is the competition in the region and the strategies of giants in response to the competition to better results for customers and However, domestic brands are not to be robust competition, but many companies will compete for a of the market share in China. Motors will see its top and bottom bolstered leveraging on the robust in the Chinese auto market. adds to many reasons why should consider investing in stock that is currently at a depressed valuation.

Disclosure: I have no positions in any mentioned, and no plans to initiate any within the next 72 hours. )


Business relationship disclosure: The has been written by a Gemstone Research research analyst. Equity Research is not receiving for it (other than from Alpha). Gemstone Equity has no business relationship with any whose stock is mentioned in article.

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