Average profit for CAR sale in the West is around 5-6%, while in China it was >30% before 2004, and now even after 10-20% price drop, the Average profit for car sale in China is still 25% or so. And who are making all these profit? In 2003, 3-4 million CARs sold in China, and every single of them was Foreign Car!
GM made tons of money from China in 2003. And here are some data. The Car industry in China before 2003 was highly protected for those who manufactured CARs in China, such as VW, and GM, among other foreign CAR makers. This has been done at the cost of the Chinese consumers. In 2003, GM has sold 5.6 million CARs in North America, and had an average profit of $145 each (made 812 million). In the same year, GM sold only 386,000 CARs in China, with an average profit of $1,132 each (made $437 million). |
