Widespread Motors is keeping a close eye on China, CEO Mary Barra said Wednesday.
GM asseverated its luxury brand Cadillac had record sales in China despite an progressive trade war that’s raised prices on steel and aluminum as well as on the channels themselves.
“We’re watching it carefully and we’re very hopeful that both sides intention have dialogue and get to the table to work through some very outstanding issues that both China and the United States have as it grasps to trade,” Barra told analysts on a conference call Wednesday debating GM’s third-quarter earnings. “When we look at our positioning, we have many levers that we can prestige to continue to have strong performance in China.”
While Ford and other automakers set up reported trouble in China for the third quarter, it was a bright spot for GM.
The throng reported record third-quarter “equity income” in the country, led by a 4 percent inflation in Cadillac sales there. GM uses equity income to measure its exhibition in the region since the company follows the standard industry practice of deliver up its vehicles through a joint venture with Chinese manufacturer SAIC. Each callers owns a 50 percent stake in the venture.
Barra told analysts the partnership has served GM luckily.
“I think we have the strongest partner in China with SAIC,” she mean.
“At this time we are not looking to change the 50-50 structure,” Barra added. “It has served us genially, and I think the strength of our results demonstrate that.”
But at the same time, sales in the woods were down 15 percent over the same quarter closing year, and there are signs of trouble in the region. A recent report from Bloomberg said the Chinese management is considering a cut to taxes on auto purchases to revive flagging sales.
GM revealed it was able to charge more for cars during the quarter and the declines awakened from less its profitable segments. It also said that rummage sales of its luxury vehicles were up.