GM, Ford Sales Jump in China

A boycott of Japanese products boosts American brands

   

As unlikely as it sounds, a dispute between China and Japan over a chain of tiny, barren islands in the East China Sea is boosting sales for Ford (NYSE:F) and General Motors (NYSE:GM).

Rising Chinese anger over the standoff relating to the Senkaku Islands, which both nations claim but Japan currently controls, has led to a consumer boycott of Japanese products in China. That has sent vehicle sales for leading Japanese carmakers plummeting in China, Bloomberg notes.

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As Chinese consumers give Japanese brands the cold shoulder, they’re turning instead at least partly to American automakers. Ford sales in China jumped 48% last month, hitting 60,518 vehicles. GM said it delivered 251,812 vehicles in China in October, up 14%.

GM noted that Cadillac sales rose 20% in China last month, while Buick gained 7.7% and Chevrolet 8.3%.

While American carmakers prosper in China, Japanese brands are reeling. Toyota (NYSE:TM) and Nissan (PINK:NSANY) saw their Chinese sales in drop 35% and 49%, respectively, in October. Last week, Honda (NYSE:HMC) said its October sales in China plunged 41%, causing it to reduce its global sales forecast for the year.

Shares of GM and Ford both rose fractionally in Monday morning trading.


Article printed from InvestorPlace Media, http://investorplace.com/2012/11/gm-ford-sales-jump-in-china/.

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