GM reports slight sales, profit decline in China

General Motors reported slightly lower first-quarter profit in China as sales slipped while the largest automaker in the US reported strong overall results as the company benefited from robust demand for trucks and SUVs in North America.

Detroit-based GM said Friday that it earned $504 million in Chinese joint venture equity income, down slightly from $518 million a year ago. Sales in China, GM's largest sales region, totaled 913,442, off 5.2 percent through the first three months of the year.

The company cited an earlier Chinese holiday and reduction in a tax incentive for the sales decline. The automaker said it expects sales in China to pick up through the year.

Baojun and Cadillac set first-quarter sales records in China, up 25.1 percent and 90.5 percent respectively. The Baojun 510, introduced in February, sold 23,000 units in the first quarter. Baojun is an entry-level brand under the SAIC-GM-Wuling Automobile joint venture.

The Cadillac XT5 sold 15,000 units - more than twice the volume of the SRX that it replaced. To capitalize on the rising Chinese market preference for SUVs and multi-purpose (MPVs), GM China will introduce nine new or refreshed SUVs and MPVs this year.

GM reported first-quarter net income of $2.6 billion, or $1.70 per share, up 33 percent from $1.95 billion, or $1.24 a share, a year earlier. Analysts were looking for earnings of about $1.48 a share.

Revenue advanced nearly 11 percent to $41.2 billion.

"Our first quarter results reflect our resolve to grow profitably and demonstrate strong earnings power of this company," GM CEO Mary Barra said in a statement.

Ford Motor Co, the second-largest US automaker, reported on Thursday that its first-quarter profit in Asia fell as competitive pressures in the region took a toll.

Ford’s overall results saw profit decline 35 percent from the year-ago period. It had warned investors in March that higher costs and lower sales volumes would hinder quarterly earnings.

In Asia, Ford said it earned a pre-tax profit of $124 million compared with $220 million for the same period last year. Ford said China drove the decline in profit before tax due to negative industry pricing and a weaker yuan. Ford’s equity income in China slumped 38 percent to $274 million from $443 million in the 2016 quarter.

paulwelitzkin@chinadailyusa.com