China vehicle pricing is 'moderating,' Chevrolet's global chief says
The head of Chevrolet expects General Motors will have a good second-half performance in China, although sales growth in the world's largest auto market is slowing.
Alan Batey said Wednesday that pricing for new vehicles is "moderating" even as competition intensifies in China. Analysts have grown concerned that new-vehicle prices continue to fall amid slowing sales growth and plans to add more production capacity in China -- posing a threat to profits at larger automakers.
Batey is a GM executive vice president who runs the Chevrolet brand worldwide and the company's North American operations.
He spoke in Detroit at an event to introduce the 2016 Chevrolet Camaro convertible.
GM shares traded down Wednesday after Goldman Sachs cut its rating on the automaker's shares to neutral from buy, citing the slowing China vehicle market, where GM is a leading player.
GM, Volkswagen AG, Ford Motor Co. and other automakers have cut new-vehicle prices across China in recent months in response to slower sales growth.
In May, GM reported a second month of sales declines in China, its largest market, despite cutting prices on 40 models across the Buick, Chevrolet and Cadillac brands.
GM and its China joint ventures sold 252,567 vehicles in May, a decline of 4 percent from a year earlier. The company blamed the drop on model changeovers and the discontinuation of older vehicle lines.
In the first five months, GM's China deliveries rose 5.1 percent to 1.47 million vehicles. The company expects annual growth of about 6 percent to 8 percent.
Batey is a GM executive vice president who runs the Chevrolet brand worldwide and the company's North American operations.
He spoke in Detroit at an event to introduce the 2016 Chevrolet Camaro convertible.
GM shares traded down Wednesday after Goldman Sachs cut its rating on the automaker's shares to neutral from buy, citing the slowing China vehicle market, where GM is a leading player.
GM, Volkswagen AG, Ford Motor Co. and other automakers have cut new-vehicle prices across China in recent months in response to slower sales growth.
In May, GM reported a second month of sales declines in China, its largest market, despite cutting prices on 40 models across the Buick, Chevrolet and Cadillac brands.
GM and its China joint ventures sold 252,567 vehicles in May, a decline of 4 percent from a year earlier. The company blamed the drop on model changeovers and the discontinuation of older vehicle lines.
In the first five months, GM's China deliveries rose 5.1 percent to 1.47 million vehicles. The company expects annual growth of about 6 percent to 8 percent.
