This Is Not Your Grandpa's Le Sabre

The Associated Press reported today that the General Motors Corporation, plagued last year with record domestic losses, has grown to be the highest selling foreign car maker in the People’s Republic of China.

In the year 2005, GM sold over 665,000 cars in China. Almost all of the Buicks, Chevrolets, and Cadillacs sold there were made at the General Motors plant in Shanghai.

So much for the prospect of an American manufacturing rebound. Detroit’s own is no longer an American production. That said, it has not been solely American for years. Many parts for American GM cars come from Canada and Mexico.

However, the Buicks that GM sells to the Chinese are not your grandpa's LeSabre. They are unique models built specifically for the Chinese higher end market.

The Buick Royaum (pictured above) is a case in point. It looks like a larger, sportier Cadillac Caterra. Like the unsuccessful Opel-based Caddy, the Royaum is rear wheel drive and is clearly meant for luxury-sport sedan market. It probably would not steal many BMW owners Stateside, but in China the sales figures show that the car makes sense to the Chinese buyer.

This is good news for GM and good news for the American auto industry, eventhough domestic manufacturing benefits little from having the cars made overseas. It bolds well for American products to be sold abroad. The U.S. has had trade imbalances for far too long and it seems that only Chrysler owned Jeep has had any international success.

GM's Chinese sales figures are a sign of things to come in the automobile industry.