Chinese Automotive Industry

Many US companies are earning profit in China. US corporate profits in China passed $2 billion in the first 2 quarters of the year. In 1999, only 57% of US firms were profitable in China. In 1999, only 0.1% of Chinese owned automobiles. In 2004, it was 2.2%. GM is leading in the auto market, as its sales climbed 36.7% from January to September to 645,000 vehicles. The top 4 car companies in China based on units sold are GM, followed by Volkswagen, Hyundai, and Toyota. Prior to 2005, Volkswagen was the leader in China. GM was able to reach the number one position by forming joint ventures with domestic firms that make minivehicles. Despite getting a late start in the Chinese market, Toyota, now #4 in units sold, is expected to overtake GM between 2008 and 2010.