GM’s quarterly sales drop by 17.5%
Third-quarter car sales of General Motor Co. plunged 17.5%. The U.S. vehicle company is lashed by the U.S.-China trade war resulting to slower economic growth compounded by fierce market competition particularly in mid-priced SUV segment.
General Motors exported 689, 531 vehicle units in China during the month of July-September this year. The quarterly sales drop becomes the fifth consecutive drop in quarterly profits for the U.S. based company in China.
GM’s Baojun, an affordable brand, also suffered from sales drop by 34.9% for the last quarter, while Buick’s sales also trimmed by 20.6%. Cadillac, an expensive brand, however, increased 10.9% profit.
The car industry in China is declining as its annual sales dropped in 2018, its first time since the 1990s, and it is believed to plunge again this year. A 6.9% sales drop was posted in August this from the same time period last year, according to the China Association of Automobile Manufacturers (CAAM).
CAAM officials said they foresee a negative sales growth in the industry in the next three years.