GM in booming market in China

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In the United States, bankruptcy looms for one of the "Big Three" automakers - General Motors. But in China, GM's division is profitable and self-sufficient.

A popular small-car lineup, booming sales growth, and a promising future. General Motors is not often described in such terms in the media these days. But in China at least, they all hold true for the number one US automaker.

After years of lagging behind its big Japanese rivals, GM has overtaken Toyota and Honda in China to become the leading foreign brand of automobiles.

Its China division saw sales in April surge 50 percent from a year earlier to a monthly record. The jump was buoyed by brisk demand for its minivans and small trucks that are eligible for state subsidies.

Jia Xinguang, Columnist of China Auto Magazine said "The position a car company holds in the market in China will decide the position they hold in the world in the near future. Why do we say this? Because China is the last growing car market in the world. China is the last chance for many companies. So China is important to GM and and all the other car companies."

The Detroit automaker's woes have been chronicled extensively in China's national media and on the Internet. But most Chinese believe its struggles at home have not affected its position in China.

One Beijing resident said "GM is a well-known old brand. It will surely have an impact on the global auto industry if it goes bankrupt. I think it's still hard to say now. However, China's domestic auto industry is still providing bright opportunities."

China's auto market overtook the US as the world's largest in January as government incentives spurred a pick-up in demand. For some, this has been a light at the end of the tunnel for the struggling global auto industry. Automobile sales touched a record high of 1.15 million units in April, rising 25 percent from the same time last year.