GM vs Toyota in China, Asia
GM has a $5 billion vision to expand in China.
The car maker will spend $1 billion each year for the next five years.
GM will spend the money on:
1. car and engine development,
2. production facilities,
3. technical support
4. after-sales support
5. infrastructure,
This year GM will sell more than 1 million, about one-tenth of the company's total, in China in 2008.
But there is a rival, actually two of them.
VW sold 900,000 cars in China this year.
Toyota sold about 450,000.
However, Toyota is building Toyota City a second plant in Guangzhou to make Camry sedans and Yaris compacts.
When Toyota's production capacity increases, watch for the company to take a bigger market share from GM.
China's 9.6% growth average over the past five years means cars are more affordable and desirable.
Next year alone, China will want 9.5 – 10 million vehicles.
This year sales will be 8-8.5 million.
Do you think Toyota will overtake GM in China?
