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GM's China growth slows

Beijing, 040708. General Motors Corp., the biggest overseas automaker in China, said sales growth in the country slowed in the first half as competition intensified with Toyota Motor Corp. and Volkswagen AG.

The carmaker boosted sales by about 14% from a year earlier in China over the past six months to more than 590,000 vehicles, Joseph Liu, vice president for GM China, said in a telephone interview Wednesday, citing preliminary data. That compares with a growth rate of 19% last year.

GM, which hasn't had a yearly profit since 2004, is counting on growth in China, where the overall market expanded 19% through May, as demand in North America plunges. Toyota started selling the Yaris compact in the first half and Volkswagen introduced the Lavida compact, while GM didn't have any new models in the country.

Source: Freep.