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China, the Largest Auto Market to Be in Coming 25 Years
"In the coming 20 to 25 years, China is sure to become the largest auto market in the world. I'm very optimistic about China's auto development. So long as there are products suitable for China's market, it'll harvest a good return. GM is looking patiently forward to the advent of the day", said Richard Wagoner, president and CEO of the General Motors in an interview with Shanghai media.
Wagoner said unlike the other auto companies, which have adopted the strategy of snowball development in China, the GM invested heavily in China's auto industry, as it has a firm belief in the boundless potential in China's auto market. For this, the GM has all along held an attitude of long-term development in its investment and cooperation with China. And so the GM held that only by establishing a solid foundation for development, can it get the upper hand in the future competition. For the moment, Shanghai GM is well on its way for bringing out the Sail, a new sedan of economic type, and a new-style cross-country vehicle - Jinbei will be off the production line by the end of the year. All these have indicated a strong desire of the GM in aspiring for a further development in China.
When asked whether the GM will expand its auto export to China, thus imposing a further influence on the investment of the joint ventures in China after its entry into the WTO, Wagoner said that the GM holds a business philosophy of "We manufacture whatever sells well at the market". With the market as the core and production carried out in the locality, it helps better the relations between the GM and its clients, learn the timely needs of the market and also contribute to the social and economic development in the locality, thereby setting up a good image there. In the meanwhile it can avoid exchange rate risk caused by export only. For this reason, GM does not agree with the idea of occupying a market by depending entirely on exportation, particularly the Chinese market. GM will adhere to manufacturing cars that tailor to the benefit of Chinese consumers in cost, function and quality.
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