[dWSOj26H]

http://www.cnbc.com/id/38053642

GM's Auto Sales in China Top US for First Time

Published: Friday, 2 Jul 2010 | 7:30 AM ET


General Motors' first-half sales in China, the world's biggest auto market, exceeded sales in its home U.S. market for the first time, according to data released on Friday.

GM's China auto sales jumped 48.5 percent to 1.21 million units in January through June, compared with the 1.08 million light vehicles it delivered in the U.S. over the same period, company data showed.

China overtook the U.S. as the world's top auto market in 2009, helped by government incentives and a 4 trillion yuan ($590 billion) economic stimulus package.

GM's June China auto sales rose 23.2 percent to 176,486 units.

Sales of Shanghai GM, the Detroit automaker's flagship car venture with SAIC Motor, came to 71,782 units, up 18.9 percent on a year earlier.

Sales of Wuling brand mini vehicles made at its three-way tie-up in south China rose 19.7 percent to 99,115 units.

[PyncGyncliacy]

This is not surprising. China has a rapidly growing middle class and they want automobiles...and microwaves and flatscreen TVs and the latest fashion and the list goes on and on.

Here's the rub: right now, they're still buying cars from the U.S., but that won't last. Along with the growing middle class, China also is a rapidly growing manufacturing country. Many economists predict that by next year, China will take over as the world's largest manufacturer of goods from the U.S., ending our 110-year run in that position.

By the way, before the U.S. and Britain ruled manufacturing, the Chinese held the top position for 1500 or so years.

[verybigf]

Condensed version of DES's post: Most economists saw this coming a decade ago.