General Motors (NYSE: GM) reported its worst quarterly sales in China since the start of the coronavirus pandemic, amid a rise in Covid-19 cases in the country as well as continuous global supply chain disruptions. The company ultimately experienced a 36% decline in sales throughout the quarter.
Nevertheless, the company is the second-largest automaker in China and is seeing growing customer interest in Cadillac vehicles, said CEO Mary Barra.
“Our Cadillac luxury sales keep growing there,” Barra said at that time. “It’s a little difficult right now with what we’ve been through in the last couple years between supply chain challenges and now frankly the consumer is not out.”
Most of China remained on lockdown because of the pandemic.
“It’s a temporary situation,” Barra said. “We think we’ll get back to the share that we had and be much higher. With our (SAIC-GM-Wuling) joint venture we do have the bestselling EV in China, which is the Hong Guang MINI EV. It is attracting new buyers.”
General Motors shares fell over 4% throughout intraday trading Wednesday. Shares have also declined approximately 47% in 2022 and have a current market cap of USD45.89 Billion.
The automaker says that sales throughout its five brands in China began to recover in May. Each one of the brands experienced double-digit sales within the quarter.