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GM Unveils 3 New Models For Chinese Market

Hoping to keep its edge in a market vital to its future as it struggles for survival, General Motors unveiled a Buick Enclave SUV, Chevrolet Cruze sedan and Cadillac CTS-V for China.

General Motors Corp. put three new models for China on show Tuesday, maneuvering to keep its edge in a market vital to its future as it struggles for survival back home.

The massive Buick Enclave SUV, sporty Chevrolet Cruze sedan and zippy but powerful Cadillac CTS-V unveiled in this aspiring auto industry hub in southern China are meant to cover the whole range of potential customers in China -- from the wealthy pleasure-seeker to young professionals buying their first vehicles.

GM's sales rose 18.5 percent last year to over 1 million vehicles in China, the world's second-largest auto market after the United States. Like other automakers, it is looking to China and other emerging markets to compensate for declining sales in the U.S. and Europe.

"We have to recognize that the U.S. is where the problem is now. We're growing in these other areas," said Robert Socia, vice president of Shanghai General Motors, one of GM's eight joint ventures in China. "The problems in the U.S. are finite and are attributable only to the U.S., and a little bit, to Europe."

America's big three automakers -- GM, Ford Motor Co. and Chrysler LLC -- have been battered by the economic meltdown in the U.S., and are lobbying the U.S. government for a $25 billion bailout. GM has said it could run out of cash by year's end without government aid. But prospects that Washington would agree to a rescue package are increasingly murky.

"China is very, very important to us when you talk about the emerging markets," said Socia. "We're expanding very, very fast here and we're going to continue to do that."

GM, Toyota Motor Corp., Honda Motor Co., Volkswagen AG -- virtually all the big automakers turned out in force for the show in Guangzhou, capital of Guangdong province, China's biggest single auto market with a population of nearly 95 million people.

China's domestic auto sales have slowed in recent months as oil prices surged and credit grew scarcer due to the global financial crisis. Analysts forecast growth in total auto sales will grow 8 percent or less this year, down from 22 percent to 8.8 million units in 2007.

But GM expects total passenger car sales to recover to about 10 percent growth in 2009, said Socia.

Although GM's worldwide sales fell 11 percent in the third quarter, that was mainly due to contractions in the U.S. and European markets, Socia said.

GM's total world sales are up 19 percent in the past decade, with large increases in emerging markets such as China, Russia, India and Brazil. In the third quarter of this year, 61 percent of its sales came from outside North America.

The three vehicles GM unveiled Tuesday bring the number of GM's models in China to 24. It's part of what GM China Group's president Kevin Wale calls a "product offensive" of new and upgraded vehicles.

The Chevrolet Cruze, which will be manufactured in Shanghai among other locations around the globe, made its first appearance in Asia after its global debut at the Paris Auto Show last month.

The Enclave and the Cadillac CTS-V will be imported from the United States -- giving a modest boost to American factories.

Priced between 519,000 yuan-594,000 yuan (about $76,100-$87,100), the Enclave is Buick's first luxury SUV exported to China.

Dealers are taking "reservations" for the limited edition Cadillac CTS-V, which costs 1.1 million (about $160,000), GM said.

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