Northern, WI 04/13/2013 (usastockreport) – For the first time in a period of three quarters, Volkswagen AG (PINK:VLKAY) (Closed: $36.97, Down by 2.86%) has been outsold by General Motors Company (NYSE:GM) (Closed: $29.62, Down by 0.34%) in China. These results have partly been possible due the increase in demand for Buick vehicles. Unlike GM, Volkswagen includes Macau and Hong Kong in its China sales-figures, had reported that its China first quarter sales had risen by 21percent and had been in the range of 770,000 vehicles. This figure was 5.7 percent lower than the deliveries that had been reported by General motors, last week.
A nine-year record
These results have given GM a head-start as it hopes to maintain its annual lead amongst foreign car-makers in China for the ninth consecutive year. China is considered to be their biggest market by both the companies. For the first time this year the market has been forecasted to top 20 million units. Yesterday, China Association of Automobile Manufacturers reported that though Volkswagen’s quarterly growth had outrun the overall passenger vehicle market in China, the March expansion of 11 percent had been slower than the growth in the industry.
In China last month, the company had recalled close to 400,000 vehicles, to have their defective gearboxes replaced. Though the automaker has not disclosed the exact cost that it will be incurring for these replacements, LMC Automotive the research firm has estimated that the company would be paying between $485(3,000 yuan)- 10, 000 per vehicle and the total could easily run above the $600 million mark.
Japan automakers under fire
Amongst the prominent foreign automakers, Ford Motor Company (NYSE:F) (Closed: $13.53, Down by 0.15%) has seen the fastest growth. Its deliveries had surged by 54 percent and reached 1,86,000 vehicles. When compared to quarterly company figures right from 2011, this indicates that Toyota had been outsold by Ford for the first time, in China. Nissan, Honda and Toyota, have all seen declines in this quarter. Last September, anti-Japan protests had flared up in China.
These companies are still reeling from that attack and have been struggling to gain a foothold in the Chinese market. Last week, Hyundai Motor Co reported that its China sales had risen 41 percent and reached a record 260,716 units.