Cars

GM China sells 1.2m cars, tops US for 1st time

(Agencies)
Updated: 2010-07-02 15:46

Growth slows

Full-year auto sales in China may rise 17 percent this year to 16 million, according to the State Information Center, even as growth may slow in the second half.

The rate of expansion in auto demand slowed in April and May as prices for gasoline, consumer goods and real estate rose. The government raised the consumption tax on small vehicles to 7.5 percent in January after cutting it in half to 5 percent last year.

In the US, GM and Ford Motor Co reported June sales that fell short of analyst estimates as consumers concerned about unemployment and the economy avoided large purchases. A 9.7 percent jobless rate and continued lower home prices have reduced consumers' confidence and are keeping them out of showrooms, dealers and analysts said.

Home market

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GM's sales in its home market last month gained 11 percent from a year earlier, trailing the 16 percent average estimate of six analysts surveyed by Bloomberg.

Industrywide US deliveries in June reached an annualized rate of 11.1 million vehicles, according to Woodcliff Lake, New Jersey-based Autodata Corp. The figure trailed the average estimate for an 11.2 million-vehicle pace and is a drop from 11.6 million in May.

GM's predecessor entered bankruptcy on June 1, 2009, and the new company emerged in July 2009. The carmaker reported first-quarter net income of $865 million this year, helped by higher production and smaller discounts. Chief Financial Officer Chris Liddell on May 17 called the profit a "good, useful step" toward an IPO.

GM posted operating profit of $1.2 billion in the first three months as revenue rose 40 percent from a year earlier to $31.5 billion.