Car sales in China help GM and Ford
While US vehicle sales slumped in August, sales grew in China.
By Ted Reed, TheStreet
The report, by the China Passenger Car Association, a research group, said August passenger car sales totaled 1.02 million and vehicle sales totaled 1.21 million.
In the U.S., August vehicle sales totaled 997,465, according to AutoData Corp. Overall, U.S. sales dipped by 21%, reflecting weak comparisons with a month when Cash for Clunkers was in full swing.
China is a different story, as sales continue to grow rapidly. The country's auto sales will likely grow at a double-digit rate to hit a record 10 million units this year, up from 8.7 million in 2009, Dong Yang, vice chairman of the China Association of Automobile Manufacturers, said Tuesday, according to a report in The Shanghai Daily.
For the month, sales by GM China and its joint ventures rose 19.2% to 181,625 units. Year to date, GM's sales in China total about 1.6 million.
Meanwhile, year-to-date sales by Ford and its joint ventures in China totaled 44,047 units, up 24% from a year earlier. Year to date, sales by Ford and its joint-venture partners are up 42% to 368,103.
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Why are stronger numbers considered bad news? Investors are worried about the impact on inflation and interest rates.
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