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GM Sales Hit 59,000 Units in China
US automobile giant General Motors sold about 59,000 Buick and Sail cars in China in 2001, almost double from 30,000 units in 2000, a GM China spokeswoman said on Friday.

"Our sales last year were about 59,000 (units)," GM China spokeswoman Daphne Zheng said. "That was both for Buick and Buick Sail."

The US company's venture Shanghai GM sold close to 29,800 of its Sail family car in 2001, which first began deliveries last June, company officials said.

Zheng declined to confirm a report by the official Xinhua News Agency that quoted GM China chief executive Philip Murtaugh as saying the company expected to sell 80,000 cars in China in 2002.

GM said in late January its China joint venture was trimming prices of its family car Buick Sail to better prepare itself for more competition after China entered the World Trade Organisation in December.

A price war has intensified in China's booming auto industry, which is expecting a flood of car imports as tariffs drop after China's WTO membership.

GM had said it would reduce prices for its Sails to 92,800-119,800 yuan (US$11,210-US$14,468) for notchback versions and 112,800-129,800 yuan for sport recreational vehicles.

Sail notchbacks were previously priced at 100,000-125,000 yuan and SRVs were sold at 122,500-135,500 yuan.

Xinhua quoted Murtaugh as saying China's WTO entry has given more scope for cooperation between GM and the Chinese auto industry and the firm plans to introduce its expertise in diversified sales models and services to China.

(China Daily February 20, 2002)

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