NEW YORK -- General Motors is planning to build a long luxury car in
China, according to a published report.
The automaker's joint venture with Shanghai Automotive Industrial Corp. has
become the leading seller of autos in the fast-growing Chinese auto market,
according to a report in July from the official Xinhua News Agency.
But the joint venture has focused on building small compact cars for that
market. GM (Charts) has actually exported some of the luxury cars from U.S.
factories to China since it started to make a bigger push there.
The Detroit Free Press reported Friday that GM Vice Chairman Bob Lutz said
the company plans to use its new rear-wheel drive auto platform to build a model
known as the Buick Royaume in China. A time frame for production of the new car
was not given.
The car will use GM's new "zeta" rear-wheel drive architecture. GM began
assembly of the first car from the program, the Holden VE Commodore, earlier
this year in Australia, the paper reported.
The platform will form the basis of the new Chevrolet Camaro and a number of
other cars for GM's brands in North America, Lutz told the paper.
China has become an increasingly important market for GM as it tries to deal
with market share losses in its core North American market.
The company announced that its joint venture's Chinese sales accounted for
about 12 percent of that market in the second quarter, good enough for the No. 1
position in that market. The sales came to about 840,000 vehicles, up just more
than 25 percent from the year ago period.
China now accounts for about two-thirds of GM's sales in the Asia-Pacific
region. And Asia Pacific was its most profitable region.
All the major global automakers are making a push in China, which saw 19
percent year-over-year growth in vehicle sales in the second quarter, according
to GM. All are working with Chinese partners.
A joint venture between Volkswagen and Shanghai Automotive Industrial Corp.
is the No. 2 seller of cars in China behind the Shanghai GM effort, according to
the Xinhua News Agency report. Japanese automakers Toyota Motor (Charts) and
Honda Motor (Charts) are also in the top 10 of the widely splintered Chinese
market. U.S. automaker Ford Motor (Charts) is not in the top 10 ranking, though.
A separate report from Reuters on Friday said DaimlerChrysler (Charts) is in
detailed discussions with China's Chery Automobile, the No. 4 Chinese automaker,
to make cars for sale in the United States and other markets and could finalize
the deal soon.