Speaking at the CEO forum held around the APEC conference in Shanghai, company chairman Jack Smith decribed the Asia Pacific region - especially China – as the only bright spot at the moment for the industry.
"The one country that stands out with growth is China and the vehicle market here is very strong at the moment. This market has the greatest potential of any market," Smith said, adding that GM’s sales in the country – measured at more than 30,000 units last year – are on course to double in 2001. "Obviously next year will be another great growth year for us because we only introduced the Sail [a Corsa-badsed small car] in May," Smith said.
GM's manufacturing presence in China is now substantial, comprising a US$1.5 billion joint venture in Shanghai and a US$230 million light truck venture in northern China which began regular production this year.
Smith said that GM currently holds a 5% share in the China market and remains confident of capturing a 10% share of the regional Asia-Pacific market in the medium term. If affiliate operations are included (e.g. Isuzu), the GM group will hold a 20% share of the Asia-Pacific market before too long, he went on. "We are taking market share this year. Our sales in the Asia Pacific and the market is down slightly, so our market share versus last year is up."
Hammered by slump in US demand, GM reported a third-quarter net loss of US$368 million and warned of weaker fourth quarter earnings. "Our judgment was that we would skate through it and not touch down on negative growth, but that changed dramatically after September 11," Smith said. "In my judgement, we're in recession, which is technically two successive quarters of negative growth."