A Research Report on the Change in Global Auto Industry (XIII)

2. General Motors, after bankruptcy protection, will see its turning point in China

General Motors said its bankruptcy protection filing would not affect its operations in China and its sales in the Chinese market have not been affected by the U.S. headquarters bankruptcy, but most industry experts have reservations about the follow-up operations of GM China.

The major causes are reflected in the following four aspects:

① GM operations have performed best among those by global automakers in China, even exceeding its overall global performance. GM has been one of the proactive overseas automakers operating in China, has cooperated with the high-quality local partner -- China's largest automaker SAIC Motor, has made full use of local human resources and has localized its innovative strategies. It is all these that have established its leading position in China's auto market.

② In the auto industry, only the products will rule. GM has few global auto models that are suitable for the Chinese taste, which will make it increasingly difficult for GM to maintain its leadership in the Chinese auto market. With its home backyard damaged by the fire (of bankruptcy), GM may face the dilemma that its future product updates will be hard to gain consumer confidence in China.