GM Falls Behind VW in China

The Buick Excelle GT is one of General Motors' best sellers in China. It's a close sibling to the Buick Verano that GM sells here. Photo credit: General Motors Co.

Even while it was spiraling toward bankruptcy here in the United States, General Motors (NYSE: GM  ) was building an impressive success story in China. China has become the world's largest new-vehicle market, and GM has continued to lead it, as Chinese car-buyers have embraced familiar brands such as Chevrolet and Buick.

GM's leadership position in China is in danger, though: Through the first eight months of 2013, archrival Volkswagen (NASDAQOTH: VLKAY  ) outsold the General in the Middle Kingdom. GM has done a fine job of keeping pace with the market, but VW and its luxury brands have been on an absolute tear -- and GM may find it hard to respond.

In this video, Fool contributor John Rosevear looks at what's working so well for Volkswagen in China right now -- and at why GM really is at risk of falling behind in this critical market.

There's good reason to believe that the most successful investors over the next few decades will be those with exposure to China's massive and growing population of domestic consumers. And there are few things that these consumers are likely to purchase with more enthusiasm than cars and trucks. In this brand-new free report, our analysts get out in front of this trend by identifying two automakers that are poised to surge along with China's middle class. If you want to be among the smart investors who get rich from this growing trend, then you'd be well advised to instantly download our free report on the topic by clicking here now.


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