Free Republic
Browse · Search
General/Chat
Topics · Post Article

To: NorseViking

[BMW, Mini and RR sell about twice as much units in China than in US. These aren’t cheap. Other luxury brands are doing about as great. I believe GM sells more cars (not counting SUVs and trucks) in China than in US too.]


It’s about the sales mix. Chinese buyers will be clustered at the low end. US buyers will be clustered at the high end. Last I looked, GM profits from US sales dwarfed those from Chinese sales:

https://www.wsj.com/articles/gms-operating-profit-hurt-by-china-results-u-s-production-cuts-11556626628
[GM said Tuesday that income from China sank by more than one-third in the first-quarter to $376 million, driving an 11% decline in the company’s overall operating profit. Chief Executive Mary Barra said she sees “more downside than upside risk in the near term” for China, where industrywide sales remain in their first protracted decline in decades.

Overall, GM’s operating profit for the January-through-March quarter totaled $2.3 billion, down from $2.6 billion a year earlier.

Operating profit from the company’s home region fell 15% to $1.9 billion, hurt by a planned cut in factory production of highly lucrative sport-utility models, such as the Chevrolet Suburban and Cadillac Escalade. GM suspended production of the SUVs at its factory in Arlington, Texas, to prepare the facility to make versions scheduled to go on sale next year.]


49 posted on 02/02/2020 11:36:09 AM PST by Zhang Fei (My dad had a Delta 88. That was a car. It was like driving your living room.)
[ Post Reply | Private Reply | To 28 | View Replies ]


To: Zhang Fei

Of course GM makes more off one Escalade sold in US than from two Cruzes sold in China.
I don’t think this is the problem for BMW or Rolls-Royce or Mini.


52 posted on 02/02/2020 11:44:27 AM PST by NorseViking
[ Post Reply | Private Reply | To 49 | View Replies ]

To: Zhang Fei

There are 1.1 BILLION more people in China than U.S.. SO it shouldn’t surprise anyone if they sell more cars there than here.


53 posted on 02/02/2020 11:46:14 AM PST by nuconvert ( Warning: Accused of being a radical militarist. Approach with caution.)
[ Post Reply | Private Reply | To 49 | View Replies ]

To: Zhang Fei
Then there’s this (which I think is a faddish and foolish investment)...

GM to invest $2.2B in first all-electric vehicle plant, create 2,200 jobs

58 posted on 02/02/2020 12:11:01 PM PST by ProtectOurFreedom
[ Post Reply | Private Reply | To 49 | View Replies ]

Free Republic
Browse · Search
General/Chat
Topics · Post Article


FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson