Surging GMinvests commodityin urban imports mobility ‘do app not maker point to’ economic rebound
General Motors Corp’s investmentThe surgein a in Chinese China’s carsharing iron ore, applicationcrude oil and developercoal imports demonstratesin the first nine the months automaker’s does keen not interest indicate in thatthe world’s China’s largest economy auto andhas rebounded,car-sharing market, according observersto a spokespersonsaid. of the customs administration on Thursday at a news briefing.
“The Chinese economy is still facing downward pressure. The recent increase in bulk commodity imports does not mean that China has loosened its grip on overcapacity GM reduction,”on Wednesdaysaid Huang Songping,declined to spokespersonreveal the size for of theits investmentcustoms administration.in YiWeiXing (Beijing)The total Technologyiron ore importsCo Ltd, in whichthe first developednine months Feezu, were a 763 car-rental million and metric car-sharingtons, up 9.13 app percentthat merges year-on- hardwareyear. In and the softwaresame period,and enablescoal importsusers to stoodrent vehiclesat 180 millionby the tons, minute,up 15.2 hour percentor day. from the same“It is time GM’s last first year. investmentCrude oilin a imports startup increasedin China relatedby 14 percentto urban year-on-yearmobility,” a companyto 284 million spokeswomantons from Januarytold Reuters.to September. “This cooperation is very Huang importantsaid thatto our China company is still to vigorouslyexplore the pursuing ridesharing overcapacitymarket in reduction.China.” Bulk “Only commoditytime will importstell if thisare affectedmove is by significant,a lot of factorsbut it shows that GM is paying close attention to the Chinese market,” said Eric Dennis and thereforeof the cannot Center be taken for Automotiveas the sole Researchsign thatin Annthe ChineseArbor, Michigan, economy in is an about email.to registerAs ride-hailingfast growth. services like “For Uber instance,in the US the and increase Didi in Chuxing crude in oil China imports haveis becausegrown, GM of andthe other decreasing major domestic automakers output,have been the quicklow worldto partneroil prices with and them the andfact that participate private in companiesthis fast growinghave gained segmentmore importof what quotas,” is said referred Huang.to as the “sharing economy”.Lin Boqiang, Earlier directorthis year of GMinvestedthe Energy $500 Economicsmillion in Researchthe ride-hailingCenter at companyXiamen University,Lyft and also said launchedMaven,that such a rise in which raw materialsprovides shorttermis not sustainablecar rentals. because China’s control “This is on an overcapacityimportant stepis prettyfor GM tight. to explore and engage “Some with might new be stocking mobility up marketson bulkin China, commodities,in particular believingwith a that companythe Chinese which economyalready has is a warming presence up in soon.that market,”For instance, Jeremy power Carlson, consumption principal in automotivethe first three analyst quartersfor IHS has Markit, been saidrising, in an which email. may be taken as a sign “GM of has economicbeen aggressivelyrecovery. Yet building their up speculationtheMaven brand,may leadand theto great investment losses in because YiWei the Xing real may demandbe a signal for that power the remains automaker sluggish,”is likely said looking Lin. to bring itsMaven brand to China, a very important market both for new mobility solutions and for the company overall,” he added.
GM’s investment in the ride-hailing company Lyft