Share price of General Motors Company (GM) declined 1.6% to $33.09 on Dec 4, though the automaker and its joint ventures in China recorded a 5.3% year-over-year increase in sales in the nation in Nov 2014, taking the figure to 310,094 vehicles. The improved performance was driven by solid results recorded by the automaker’s Shanghai GM and SAIC-GM-Wuling manufacturing joint ventures in the month.
Domestic sales of Shanghai GM rose 5.4% to 149,747 vehicles in November while that at SAIC-GM-Wuling stood at 156,065 vehicles, up 6.7% year over year. FAW-GM sales declined 28.9% to 4,282 vehicles in China during the month.
General Motors offers a wide range of vehicles – from passenger to commercial – and varied brands in China. The different brands are Baojun, Buick, Cadillac, Chevrolet, Jiefang, Opel and Wuling.
The Buick brand’s sales in China improved 3.7% to 78,923 units in November. The upside was driven by an increase in the sale of the original Excelle to 22,325 units and sales of Excelle XT and GT of 19,425 units. Sales of the Regal and Envision stand at 10,134 units and 6,795 units, respectively.
Sales of Chevrolet improved 7.3%, bringing the number to 64,006 units. The brand benefited from the Sail family sales of 22,831 units, up 20.7% year over year. Sales of the Cruze family were 20,486 units. Sales of the Malibu increased 8.9% to 10,082 units.
Sales of the Cadillac luxury vehicle brand witnessed an 8.6% rise to 6,818 units in Nov 2014, benefiting from an increase in XTS and SRX sales of 2,777 units and 2,013 units, respectively.
Sales of Wuling in China were 122,596 units in the month. Sales of the Hong Guang family increased 16% to 69,808 units. Meanwhile, sales of Baojun soared 219.8% to 33,469 units while that of the Baojun 730 MPV totaled 30,089 units.
General Motors – a Zacks Rank #3 (Hold) stock – is a leading global automotive company. It has ten joint ventures and two wholly owned foreign enterprises in China, with more than 58,000 employees in the country.
Better-ranked automobile stocks worth considering include Harley-Davidson, Inc. (HOG) Meritor, Inc. (MTOR) and PACCAR Inc. (PCAR), each carrying a Zacks Rank #2 (Buy).
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