General Motors leads the pack in China, the world's fastest growing auto market. But GM is in no position to shift into cruise control.

The company's Asian rivals -- Toyota, Honda and Hyundai -- are coming on strong. Volkswagen, the former top dog in China, has bounced back with new models.

Ford's China sales are surging. And domestic carmakers are steadily gaining market share as they strive to build reliable, low-cost vehicles. Fierce competition has driven down auto prices in China. An oversupply of vehicles looms as automakers rush into the market and bring more production capacity online.

GM has its hands full in China's cutthroat market as it tries to offset slipping share and big losses in the US.  China is the wild, wild West of the automotive industry. It's a tough market because every global manufacturer is there and Chinese companies are there. GM is looking over its shoulder at everyone.

China's year-over-year vehicle sales rose 25% to 5.17 million units the first nine months of 2006, said the China Association of Automobile Manufacturers. GM's sales in China climbed 36.7% from January to September to 645,000 vehicles. But third-quarter sales rose just 17% vs. a year before to 192,000. Its market share slid to 11.4%, down from 12% in the second quarter. Still, that's up from 9.6% in 2004.

"Our market share is down slightly but our overall position in China is one we like," said GM CFO Frederick Henderson. "It's a challenging environment."

GM reported a narrower third-quarter net loss. Adjusted earnings were much better than expected. But shares fell 4%after surging 8.5% in the prior two sessions.

Volkswagen's year-to-date car sales in China are up 28.7% to 455,700. Honda, No. 3 in China, underperformed. Its nine-month sales rose 18.5% to 226,000. Hyundai sold 211,000 vehicles, up 23%.

Source:未知