by Christopher Freeburn | November 5, 2012 10:06 am
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.
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.
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