China Becomes No. 2 Vehicle Market

Red-hot Chinese sales have brought relief to U.S. automakers, which have seen weak demand at home.

General Motors Corp. said Monday that its total sales in China last year rose 32 percent over 2005 to 876,747 vehicles. Ford Motor Co. said sales of its brands, including Ford, Lincoln, Jaguar, Land Rover and Volvo, rose 87 percent to 166,722 units.

European and Japanese automakers report similar surges. Luxury auto maker Rolls Royce, owned by Germany's BMW AG, says its 2006 sales were up 60 percent. The company is expanding its work force to meet Chinese demand for its $380,000 luxury Phantom.

China's biggest-selling automaker last year was Shanghai General Motors Corp., a GM joint venture, with 365,400 vehicles sold, according to the Chinese industry group.

The top-selling car was the Jetta, made by FAW-Volkswagen Co., one of Volkswagen AG's joint ventures.

The biggest Chinese manufacturer was Chery Automobile Co., with 272,400 units sold. Chery and DaimlerChrysler AG announced a plan last month for the Chinese company to make small cars for sale worldwide under the Dodge, Chrysler or Jeep brands.

China's automakers exported about 325,000 vehicles last year, about 80 percent of them low-priced trucks and buses bound for developing markets in Asia, Africa and Latin America, the government says.

They also are eager to break into the U.S. market, though analysts say they will have trouble meeting safety and environmental standards.

This week at the Detroit Auto Show, China's Changfeng Motor Co. displayed a pair of sport utility vehicles and two pickup trucks ahead of what it said were planned exports to the United States.

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On the 'Net:

China Association of Automobile Manufacturers (in Chinese): http://www.caam.org.cn

Japan Automobile Manufacturers Association: http://www.jama.org/