GM China Sales Up - Way Up

SHANGHAI, China — General Motors is celebrating sales in China that are up 55.6 percent for the year to date. The automaker's sales in the country roared to a monthly record last month as government stimulus measures boosted demand for autos.

Sales in China for the U.S. automaker, which is reorganizing toward a leaner company after emerging from bankruptcy protection, more than doubled to 181,148 units last month from a year earlier. In contrast, GM's sales in the U.S. in September crashed 45 percent despite the government's Cash for Clunkers program.

For the first nine months of this year, GM's sales in China totaled 1.29 million units, a jump of 55.6 percent year on year.

"Sales continue to surpass forecasts as nearly all market segments experience growth," said Kevin Wale, president and managing director of GM China Group. "A major market driving force this year has been first-time car buyers in China's second-, third- and fourth-tier cities."

The central government launched a pilot program to provide subsidies and also cut the vehicle purchase tax for consumers who sell their cars to purchase new ones.

These moves have powered China's auto sales to grow 29 percent in the first eight months of this year, making the country one of the bright spots in a generally gloomy global auto picture.

GM, the largest overseas automaker in China, said vibrant sales this year helped it to an estimated market share of 13.4 percent by last month.

The launch of the Chevrolet Cruze and the new Buick LaCrosse have helped Shanghai General Motors to sell 480,213 vehicles in the first three quarters of this year, already beating its 2008 full-year sales.

Inside Line says: For General Motors, the China market is looking more essential by the day. — Vivian Jin, Correspondent