China is the engine of world growth and the only country left standing with REAL GROWTH
By Daniel at 19 March, 2009, 1:50 pm
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YES folks the shift from America to china is swift and rapid. CHINA IS NOW THE WORLD’S LARGEST AUTO MARKET. I have said many times that the collapse of the U.s auto market where Toyota makes all her money will take Toyota with it.
see below where GM is making tons of money in CHINA now the world’s largest auto market.
China’s Rural Subsidies Aid GM’s Sales More Than U.S. Bailout
March 19 (Bloomberg) — General Motors Corp. can thank U.S. taxpayers for $13.4 billion in loans that have kept it running. The carmaker can also thank China’s government, which is kicking in subsidies of as much as $1,170 to help it sell vans.
The automaker’s China minivan venture boosted sales 32 percent in the first two months after a cut in retail taxes on small vehicles. The government is now giving out 5 billion yuan ($731 million) in subsidies to spur auto sales in rural areas.
GM doubled its 2009 forecast for China’s market growth as the tax cuts and subsidies revived demand, helping the country PASS the U.S. as the WORLD’S LARGEST AUTO MARKET so far this year. By contrast, the Detroit-based carmaker’s domestic sales have plunged 51 percent, forcing it to seek as much as $16.6 billion more in government aid.
“Every farmer in China wants a new vehicle, all 800 million of them,” said Yale Zhang, a consultant at CSM Asia in Shanghai. “It looks like the government wants to make that happen.”
The auto subsidies fit into China’s wider push to help spread economic growth into rural areas, heavily dependent on agriculture. The rural areas are home to about half of the country’s 1.3 billion people. They are also in line with China’s 4 trillion yuan stimulus plan designed to help revive the economy by spurring domestic consumption.
China’s Demand
Vehicle sales in China may rise between 5 percent and 10 percent this year, according to GM, the largest overseas automaker in the country. It had previously forecast sale growth of less than 3 percent. The automaker expects to outperform the wider market by as much as 3 percentage points, helped by sales at SAIC-GM-Wuling Automobile Co., the largest minivan-maker in China. The venture accounts for at least half of GM’s China sales. SAIC Motor Corp. gained 2 percent to 9.88 yuan in Shanghai today. The stock has gained 84 percent this year.
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