GM Sees Sales Rise in China

It was revealed on Tuesday that demand for microvans in China resulted in strong sales growth, up 21.3%. In what is a strong year for the U.S. automaker so far, China is helping GM continue to stride forward alongside other automakers in the country despite the fact that there are hints that economic activity may be slowing down. It should also be taken into consideration that sales at the Cadillac division have dropped, so there is still much work to be done. GM said in a statement on Tuesday that Chinese sales rose 21.3% in May compared to the same period in 2011 to 231,183 vehicles. In addition, sales rose 1.7% from April. For the first quarter, the company sold 1.2 million vehicles, which is up 11.5% from the previous year. It is the microvans that really shone, part of a joint venture with Shanghai Automotive Industry Group called SAIC-GM-Wuling. They saw a 34% rise in sales during May to 119,721 vehicles. However, Cadillac sales fell 2.2% in May to 2,205 vehicles. Still, the rise of the minivan far outweighs the losses from the Cadillacs, even if the company itself will be justifiably concerned and looking into ways to stop that rot. GM is not alone in seeing overall sales rise. BMW saw a 32% rise in May to 27,185 vehicles, while Volkswagen's Audi sold 36,278 vehicles in May, a 44% rise. Quite what has caused the overall increase in the sales of vehicles during May is something of a mystery, but the evidence is compelling. Toyota TM saw sales triple in May to 79,000 vehicles, a staggering increase. Analysts believe that China is simply recovering from the effects of last year's earthquake and tsunami, and we are now seeing signs that the healing process is moving along nicely. It has also been suggested that the second quarter could well see the numbers stabilize, which would be good news for Cadillac, though the other vehicle makers won't be so keen to see their numbers dip. Follow me @BCallwood.