For the last five years or more, GM PR has attempted to put a rosy glow on the latest sad stats from North American by saying, "Yeah, but we're kicking some serious ass in China!" From the beginning, TTAC has warned that A) the People's Republic will eventually game the market to favor 100% domestic carmakers B) GM is making the same branding mistakes in China that it's made elsewhere C) GM's Chinese growth has not kept pace with its rivals and D) what goes up, must come down. The New York Times reports that China's booming automotive market, indeed its whole economy, is entering the doldrums. "Demand is beginning to weaken for big-ticket purchases. J. D. Power and Associates just cut its forecast for car sales in China this year to 5.95 million — still up from 5.42 million last year, but much less of an increase than the company’s previous forecast of 6.2 million." And there are some interesting side-effects. "China’s slowing growth is one reason that gasoline prices have fallen in the United States, for example. Similarly, world prices for metals like copper, tin, zinc and aluminum have tumbled in the last several weeks, as voracious Chinese factories have closed, or cut back their consumption."
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Jesus, I hope so. Maybe it’ll be possible to visit China in the future without losing three days of your life for every minute you breathe without an oxygen mask…
Rumor has it the price of gas in China will go to $5.30 after the Olympics. They also slapped huge new consumption taxes on importing anything larger than a 1.5 liter car.
There is a balancing act between the Chinese government wanting a world-class car industry and the accidental costs of owning cars (fuel, environment, road expenses). You’ll see the Chinese market grow quickly to a certain size, then level off.
GM’s products in China are all made in Korea. Or Australia.
Not true. Chinese Buicks are made in China and even designed in China. The smaller Chevys are most likely Korean. For now.
The shared domestic partner deal in China will rear it’s ugly head soon. When the Chinese auto manufacturers get up to speed, the foreigners are gone.
So, why does this ugly thing have red headlights? I also love the idea of putting the exhaust at the front – they sure love their smog over there! :)
monkeyboy :
August 5th, 2008 at 12:45 pm
The shared domestic partner deal in China will rear it’s ugly head soon. When the Chinese auto manufacturers get up to speed, the foreigners are gone.
Exactly, why ever would we expect communists to keep their word? The reality is that communist countries only make money through corruption and slave labor.
Could decreasing gas prices and factory material use perhaps be related to the closing of factories and reduction of 50% of the automobiles on the road for the olympics?
Are they going to bounce right back up after the games?
DaPope: That’s the Chrysler Imperial concept from 2006.
monkeyboy : Correct–the Buick Reno is the daewoo hatchback we get in the form of the Suzuki of the same name.