Akerson says GM to add 600 China dealers in 2012

[Lakeshow]

I think I've seen this movie before...

http://www.autonews.com/apps/pbcs.dl...ealers-in-2012

Most economic indicators are showing the Chinese economy set for a bit of setback. Nice timing as usual boys, wonder how a bailout from the Chinese government would look like...

[XDCX]

Originally Posted by Lakeshow

Most economic indicators are showing the Chinese economy set for a bit of setback. Nice timing as usual boys, wonder how a bailout from the Chinese government would look like...

I was thinking the same thing when I read that headline.

I've read several reports over the past few months indicating that China's growth has slowed and many compare China's situation to Japan's where they entered a long recession after a period of rapid growth.

I'm no economist, but I agree that GM's decision to ramp-up their dealer network in China is probably about four years too late.

On a side note, I wonder if the GM's Dealer Network in China is factory-owned or whether they use a distributor?

[XDCX]

I thought of this thread when I read a story in Automotive News that Jim Press believes U.S. Dealer Groups will eventually open dealerships in China.

Press is now working for the McLarty Automotive Partners and oversees their dealer operations in China. McLarty currently has 10 dealerships in China with plans to open another 13. Press indicated to his knowledge McLarty is the only U.S. Dealer Group to have a presence in China.

Based on Press' comments it appears the Chinese auto market is similar to the U.S. franchise system but it will likely require huge capital to establish an operation and compete.

[57years]

Interesting You Tube Video on GM and China:

http://www.youtube.com/watch?v=Lvl5G...ature=youtu.be

[XDCX]

Originally Posted by 57years

Interesting You Tube Video on GM and China:

http://www.youtube.com/watch?v=Lvl5G...ature=youtu.be

I just had a chance to watch the video and thought it was very interesting.

Like everything I watch, I try to take a step back and be objective. I can't fault GM for wanting to gain a foothold in China - it's likely going to be the only market with significant automotive growth over the next 20 years. Additionally, it appears GM's doing very well in China; I read a news report this morning that GM sells more cars in China in three days than Chrysler manages to sell in an entire year.

That said, I am concerned that GM and the other OEMs will increasingly move jobs to China and that will continue to put pressure on America's dwindling middle class. I'm also of the belief that both GM and Chrysler could have been restructured using government loans as opposed to bankruptcy.

Did the American Taxpayers bailout GM so it could become China Motors? I don't know, but I wish the bailout would have been structured in a fashion so the American Taxpayers didn't lose $35 Billion in the process. ($19 Billion is the estimated direct loss with an additional $16 Billion in tax credits that the NEWCO version of GM didn't deserve.)