GM to Expand in China
General Motors is announcing plans to open 600 new dealerships in China, despite a recent slowdown in sales growth. The company is also planning to add assembly lines in that country.
General Motors Chairman Dan Akerson announced the expansion plans at the Beijing Auto Show. He says the company is making the investment because it believes in the "strength of the Chinese market." China is currently the world's largest auto market in terms of vehicles sold. However, the growth in that market has slowed signficantly in recent months. Sales growth slipped from 35 percent in 2010 to just two percent in the latest quarter.
Analysts say demand for vehicles in China has been blunted by government credit and investment controls that are aimed at slowing the overheated economy there.
Akerson says GM plans to nearly double its production capacity in China, to five million cars by 2016.