General Motors’ June 1st Chapter 11 bankruptcy filing was likely behind the automaker’s sharp drop off in June sales, but some global markets appear to be well insulated from the Detroit automaker’s precarious financial position.
While GM’s U.S. and European sales continue to falter, the automaker’s China division continues to see strong results. GM previously predicted that its Chapter 11 filing would slow its sales growth in China to about 10 percent, but the Detroit automaker now says it expects to expand its Chinese sales by more than 20 percent this year, according to Automotive News.
GM was concerned that its financial woes could alter consumer perception in China, but the situation appears to be far enough removed to keep business moving as usual. That’s good news for General Motors as China represents the automaker’s second largest market, trailing only the United States. For the most part, China has avoided a complete sales collapse as a result of the faltering global economy.
