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Chinese car market overtakes that of United States
Associated Press ^ | December 11, 2009 | ELAINE KURTENBACH and DEE-ANN DURBIN

Posted on 12/11/2009 8:59:32 AM PST by phil_will1

SHANGHAI — China has overtaken the U.S. as the world's biggest market for automobiles, the first time any other country has bought more vehicles than the nation that produced Henry Ford, the Cadillac and the minivan.

Now that the Chinese buy more cars and trucks than Americans, the shift could produce ripples for the environment, gas prices and even the kinds of cars automakers design.

More than 12.7 million cars and trucks will be sold in China this year, up 44 percent from the previous year and surpassing the 10.3 million forecast in the U.S., according to J.D. Power and Associates.

China has long been expected to overtake the U.S. since its population of 1.3 billion is more than quadruple that of the United States. But the increase in sales happened much faster than anyone expected because of China's tax cuts, its stimulus program and a depressed American market.

Two years ago, J.D. Power predicted China would pass the U.S. in 2025. Earlier this year, it forecast 2009 sales of just 9 million vehicles for China.

(Excerpt) Read more at google.com ...


TOPICS: Business/Economy; Foreign Affairs
KEYWORDS: globalization; taxreform
Two years ago J. D. Power predicted that the Chinese auto market would pass us in 2025 - 18 years. Now it has happened in 2009, which means that it only took two years.
1 posted on 12/11/2009 8:59:33 AM PST by phil_will1
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To: Man50D

Fairtax ping, please.


2 posted on 12/11/2009 9:01:22 AM PST by phil_will1 (My posts are in no way limited or restricted by previously expressed SQL opinions)
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To: phil_will1
I read somewhere the top auto salesman in China is a fellow named Rick Shaw.
3 posted on 12/11/2009 9:02:19 AM PST by gov_bean_ counter (Sarah Palin - For such a time as this)
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To: phil_will1
This was a country that just thirty years ago had few cars and didn't even have a modern road network. Now eastern China has freeways extending from Shanghai to Beijing.

"Show me just what Mohammed brought that was new, and there you will find only things evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelogus

4 posted on 12/11/2009 9:02:42 AM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: phil_will1

Send them the UAW.


5 posted on 12/11/2009 9:03:12 AM PST by VR-21
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To: VR-21

Send ‘em Barack Obama.


6 posted on 12/11/2009 9:05:11 AM PST by sono (With Congress, every time they make a joke it's a law, and every time they make a law it's a joke.)
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To: phil_will1

No unions in China, also no govt health insurance etc.


7 posted on 12/11/2009 9:05:35 AM PST by Let's Roll (Stop paying ACORN to destroy America! Cut off their government funding!)
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To: VR-21
BRAVO!!!
8 posted on 12/11/2009 9:06:07 AM PST by GOPsterinMA ("Henceforth, you shall be known as...'Nobel Obama'".)
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To: Let's Roll
The Chicoms cut taxes and boosted private investments. We're raising taxes and expanding government. Guess who holds most of America's foreign debt?

China.

"Show me just what Mohammed brought that was new, and there you will find only things evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelogus

9 posted on 12/11/2009 9:09:05 AM PST by goldstategop (In Memory Of A Dearly Beloved Friend Who Lives In My Heart Forever)
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To: goldstategop
China will enter into a deal with General Motors and build a proportional amount of Chinese cars here for American consumption. This will keep the name General Motors alive and obamma can claim credit
10 posted on 12/11/2009 9:14:13 AM PST by shadeaud ("If you can't beat them, arrange to have them beaten." -- George Carlin)
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To: phil_will1
But the increase in sales happened much faster than anyone expected because of China's tax cuts, its stimulus program and a depressed American market.

Even the commies understand that capitalism and tax cuts work to stimulate the economy.

Obama is intentionally destroying our nation.

* comment delete by user on the account the the racist bastard in chief isn't worth the co2 *

11 posted on 12/11/2009 9:14:32 AM PST by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: gov_bean_ counter

12 posted on 12/11/2009 9:18:19 AM PST by reagan_fanatic (Socialism is hip until somebody loses a paycheck)
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To: phil_will1

Pretty crappy reportage. Plenty of space to mention air pollution and fuel prices because of the influx, and cars designed with Feng Shui, but not a word about how American car makers are benefiting, if at all.


13 posted on 12/11/2009 9:23:02 AM PST by Cyber Liberty (Ram "Health Care Reform" down our throats in '09, and we'll ram it up your @ss in '10.)
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To: phil_will1

Exactly why any legislation regarding emissions, etc. without China is totally missing the point.


14 posted on 12/11/2009 9:29:24 AM PST by twigs
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To: phil_will1; Taxman; Principled; EternalVigilance; kevkrom; Bigun; PeteB570; FBD; Voter#537; ...
Fair Tax ping!


15 posted on 12/11/2009 11:51:22 AM PST by Man50D (Fair Tax, you earn it, you keep it! www.FairTaxNation.com)
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To: phil_will1

Note that this says “Market for cars”, not “builder of cars”

duh.. with over a billion people, who are starting to have money for the first time, of COURSE they are the biggest MARKET for cars. Most people here in the US already have one, over in China, they don’t. It’s a lot harder to sell a car to someone with a car, than someone who doesn’t have one. Of course, the market there will be larger.. they have 5 times as many people!!


16 posted on 12/11/2009 11:58:30 AM PST by Mr Inviso (ACORN=Arrogant Condescending Obama Ruining Nation)
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To: goldstategop
This was a country that just thirty years ago had few cars and didn't even have a modern road network. Now eastern China has freeways extending from Shanghai to Beijing.

And as bad as those freeways are (I know, I live half my life in Shanghai, and drive those roads regularly) they're STILL better than the freeways here in Seattle!

17 posted on 12/11/2009 12:00:23 PM PST by PugetSoundSoldier (Indignation over the Sting of Truth is the defense of the indefensible)
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To: goldstategop
This was a country that just thirty years ago had few cars and didn't even have a modern road network. Now eastern China has freeways extending from Shanghai to Beijing.

You could say the same thing about 1960's USA.

18 posted on 12/11/2009 12:02:04 PM PST by Trailerpark Badass (Happiness is a choice!)
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To: phil_will1

This is just one of many, many, many pieces of evidence that we are entering into a new era of greatly increased global competition. China, India and the other developing nations are at once a threat and a tremendous opportunity. Their rapidly expanding middle classes constitute a vast market for U.S produced goods - if we are aggressive enough and nimble enough to capitalize on the situation. That isn’t to say that there won’t be enormous challenges in doing so. Labor cost differentials are obviously an obstacle, as is our regulatory environment.

However, we also have to address the fact that we have a tax system which places foreign producers in a preferential position vs our own domestic producers, not only in foreign markets, but even here in our own domestic market - still the largest consumer market in the world.

This is just one of the reasons to pass the FairTax.


19 posted on 12/11/2009 12:05:13 PM PST by phil_will1 (My posts are in no way limited or restricted by previously expressed SQL opinions)
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To: Cyber Liberty
Pretty crappy reportage. Plenty of space to mention air pollution and fuel prices because of the influx

China restricts the sales of cars, by offering a set number of new license plates each year. And you bid on that license plate (usually around 45,000 and up - depending upon the license number - for a Shanghai plate). Demand is high across all of China as they get more and more money, and want better and better things.

Gas is about the same price as here in Seattle, too - typically I pay 4.7 RMB per liter, which works out to around $2.62 per gallon, on par with the $2.69 I paid yesterday at Costco, here in Seattle.

and cars designed with Feng Shui

Yeah, best to get a good VW or BMW or Mercedes. Some of the "design concepts" of the Chinese cars are a bit odd, to say the least!

not a word about how American car makers are benefiting, if at all.

Ford and GM make big profits in China, which offset the losses here in the US. both those brands are "luxury" brands in China; the Buick Lacrosse is considered on-par with Audis and 300-series Mercedes. Ford Fusions are THE small car to get, and they cost more in China than they do in the US, because they carry a US brand.

20 posted on 12/11/2009 12:06:54 PM PST by PugetSoundSoldier (Indignation over the Sting of Truth is the defense of the indefensible)
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To: Trailerpark Badass

“You could say the same thing about 1960’s USA.”

Good point. In spite of two world wars, the Great Depression, several other less severe economic downturns and smaller wars, the US economy grew by something like 18 fold during the 20th century. Some students of China believe that they are poised for similar growth during this century.


21 posted on 12/11/2009 12:09:18 PM PST by phil_will1 (My posts are in no way limited or restricted by previously expressed SQL opinions)
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To: PugetSoundSoldier
Ford and GM make big profits in China...

'Bout dang time somebody answered my real question.

:^)

My company needs Ford and GM cars to sell. There is much pain hereabouts, and I'd like to see better times.

22 posted on 12/11/2009 12:24:22 PM PST by Cyber Liberty (Ram "Health Care Reform" down our throats in '09, and we'll ram it up your @ss in '10.)
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To: Cyber Liberty

When I was looking for a car in China, I ended up buying a 4 year old Audi A6 - it was actually cheaper than a 6 year old Buick Lacrosse! The Chinese love the US brands; me, I know what Buicks REALLY are and prefer the Audi (actually, I almost got a VW Passat - same basic car - but got a screaming deal on a low miles, foreign owned A6).

China will consume every car we can make; the Ford dealers in Shanghai are typically 8-10 weeks out on delivery. Can’t keep up with demand.


23 posted on 12/11/2009 12:32:10 PM PST by PugetSoundSoldier (Indignation over the Sting of Truth is the defense of the indefensible)
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To: phil_will1
Two years ago J. D. Power predicted that the Chinese auto market would pass us in 2025 - 18 years. Now it has happened in 2009, which means that it only took two years.

Well, since a grand total of 12 new cars were sold in '09, it was more a function of us passing them than the other way around.

24 posted on 12/11/2009 12:47:58 PM PST by Still Thinking (Quis custodiet ipsos custodes?)
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