In the first quarter of 2012, GM sold 2.3 million vehicles and trailed the 2.5 million sold by global rival Toyota. In the U.S., GM’s market share fell to 17.5% in the first quarter, the lowest U.S. share in about 90 years.
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New York, NY (PRWEB) August 12, 2012
In a recent Investment Contrarians article, editor George Leong claims that the Chinese love their GM cars, as the brand is considered to be prestigious and much more favorable than the Chinese-made clunkers. Leong states GM is a major player in China, noting the company had three of its vehicles on the list of the top 10 selling cars in China in 2011, with its “Buick Excelle” as the top seller and “Chevrolet Sail” in second.
“GM sold over nine million vehicles in 2011 and accounted for 11.9% of the global market share,” reports Leong. “In the first quarter of 2012, GM sold 2.3 million vehicles and trailed the 2.5 million sold by global rival Toyota. In the U.S., GM’s market share fell to 17.5% in the first quarter, the lowest U.S. share in about 90 years.”
The world’s automakers know that, to grow, you need a presence in China’s auto sector, whether in a venture with a Chinese company or as a standalone manufacturer of vehicles, states Leong.
According to the Investment Contrarians editor, GM is focused on China, as it feels the steady rise in the country’s middle class will drive the demand for cars. The automaker announced plans to invest a minimum of $5.0 billion in China in an effort to reach a sales target of five million vehicles by 2015, he reports.
“These are lofty ambitions for GM,” states Leong, adding he would be impressed if the company could reach this target.
GM could turn out to be a buy low/sell high opportunity, according to Leong.
There are numerous ways to play the Chinese auto sector, concludes Leong, suggesting investors buy an auto company, like GM, with exposure to China.
To see the full article and to get a real contrarian perspective on investing and the economy, visit Investment Contrarians at http://www.investmentcontrarians.com.
Investment Contrarians is a daily financial e-letter dedicated to helping investors make money by going against the “herd mentality.”
The editors of Investment Contrarians believe the stock market and the economy have been propped up since 2009 by artificially low interest rates, never-ending government borrowing and an unprecedented expansion of our money supply. The “official” unemployment numbers do not reflect people who have given up looking for work and are thus skewed. They believe the “official” inflation numbers are also not reflective of today’s reality of rising prices.
After a 25- to 30-year down cycle in interest rates, the Investment Contrarians editors expect rapid inflation caused by huge government debt and money printing will eventually start us on a new cycle of rising interest rates.
Investment Contrarians provides unbiased research. They are independent analysts who love to research and comment on the economy and investing. The e-newsletter’s parent company, Lombardi Publishing Corporation, has been in business since 1986. Combined, their economists and analysts have over 100 years of investment experience.
Find out where Investment Contrarians editors see the risks and opportunities for investors in 2012 at http://www.investmentcontrarians.com.
George Leong, B. Comm., one of the lead editorial contributors at Investment Contrarians, has just released, “A Problem 23 Times Bigger Than Greece,” a breakthrough video where George details the risk of an economy set to implode that is 23 times bigger than Greece’s economy! To see the video, visit http://www.investmentcontrarians.com/press.