On January 27, 2020, General Motors President Mark Reuss announced a $2.2 billion investment in the automaker’s Detroit-Hamtramck Assembly Plant in Michigan to produce new all-electric trucks and autonomous vehicles.
Michael Weiland/CNBC
Detroit – General Motors General Motors President Mark Reuss said Thursday that as market conditions change and domestic competition intensifies, General Motors believes it can regain market share in China after falling to about a 20-year low last year. Regain market share in China.
The longtime GM executive said new all-electric and plug-in hybrid vehicles and a redesign of the Buick brand will help the automaker turn around its business in the region.
GM’s market share in China, including its joint ventures, has plummeted from about 15% in 2015 to 8.6% last year, the first time it fell below 9% since 2003. %.
Reuss also praised the competitiveness of General Motors’ Chinese joint venture partners such as Wuling Motors. General Motors first launched operations in China in 1997.
“You can look at it any way you want from a larger geopolitical perspective, but for us in China, having such deep engagement with our joint venture partners there over many years is A huge advantage: “We have an advantage with Buick and Wuling, and it goes both ways. “
GM’s decline in market share in China is due to growing competition from government-backed domestic automakers due to nationalism and a generational shift in consumer attitudes toward the auto industry and electric vehicles.The company joins other U.S. automakers in dealing with geopolitical tensions between the U.S. and China
Sales of GM’s U.S. brands such as Buick and Chevrolet have fallen more sharply in China than at joint ventures. Of the 2.1 million vehicles GM sold in China last year, joint venture models accounted for about 60%.
The market decline has raised questions about whether GM will exit China, as the company has underperformed in other markets in recent years.
Reuss said Thursday that General Motors plans to remain in China “for the foreseeable future.”
“Nothing is impossible to ensure that GM has a strong future and creates appropriate profitability and appropriate returns for our investors,” GM Chief Executive Mary Barra told investors in February. ”.
On General Motors announced on tuesday ‘Leadership change’ in China Steve Hill, currently GM’s vice president of global commercial operations, will succeed Julian Blissett, GM’s China president, the automaker said. The appointment is effective from June 1.
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