Loading
Associe-se

GM warns of ongoing challenges in China as sales fall 15% in 2019

GM warns of ongoing challenges in China as sales fall 15% in 2019
Published in 17 January, 2020
Share

DETROIT – General Motors expects continued challenges in China after a double-digit sales decline in 2019.

GM’s sales in China dropped 15.1% to nearly 3.1 million vehicles last year compared with 2018, including a 13.3% year-over-year fall in the fourth quarter, the Detroit automaker and its joint ventures in China said Tuesday. The sales drop marked the second consecutive year of declines for GM amid a weakening Chinese economy and trade war with the U.S.

GM China President Matt Tsien said the company anticipates the country’s slump to continue this year and pose additional challenges for the automaker.

“We expect the market downturn to continue in 2020, and anticipate ongoing headwinds in our China business,” he said in a release on Tuesday.

GM shares closed down 1.9% to $35.15 on Tuesday. The stock is up more than 2% over the past 12 months but down around 4% over the last week.

China is the world’s largest automotive market and surpassed the U.S. as GM’s top-selling market in 2010. Sales in China have become significantly more important for GM in recent years as it has shed other international operations such as Europe, Russia, India and other countries.

“We expect the market downturn to continue in 2020, and anticipate ongoing headwinds in our China business,” he said in a release on Tuesday.

GM shares closed down 1.9% to $35.15 on Tuesday. The stock is up more than 2% over the past 12 months but down around 4% over the last week.

China is the world’s largest automotive market and surpassed the U.S. as GM’s top-selling market in 2010. Sales in China have become significantly more important for GM in recent years as it has shed other international operations such as Europe, Russia, India and other countries.

Source: CNBC