GM's China sales drop further

Sales stuck in the slow lane for GM in China. General Motors' vehicle sales fell for a second year in a row, declining 15% to 3.1 million vehicles in its largest overseas market. Denting its performance: a slowing economy and weakness in its mid-priced sport utilities.

Its lower end and mass market brands took the biggest hits. Baojun sales dropped nearly 28% while Chevrolet tumbled 20%. But sales of its luxury brand, Cadillac, rose to an all-time high.

GM makes Buicks, Chevys and Cadillacs as well as no-frills minivans and higher-end cars on the Mainland through joint ventures with Chinese partners. To fire up sales, the automaker plans to bolster its product lineup and boost cost efficiencies.

But GM warned not to expect a quick turnaround. It sees the market downturn continuing into this year. It can partly blame market factors: The China Association of Automobile Manufacturers forecasts China's auto market will shrink for the third straight year due to the weaker economy and the prolonged trade dispute with the United States.

Ford is feeling it, too. Its sales fell more than 30% in China in the third quarter.