Chinese Auto Market Hitting the Skids?

chinese auto market hitting the skids

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."

Comments
Join the conversation
4 of 8 comments
  • AJ AJ on Aug 05, 2008
    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.

  • Ricky Spanish Ricky Spanish on Aug 05, 2008

    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?

  • Geggamoya Geggamoya on Aug 05, 2008

    DaPope: That's the Chrysler Imperial concept from 2006.

  • Areitu Areitu on Aug 05, 2008

    monkeyboy : Correct--the Buick Reno is the daewoo hatchback we get in the form of the Suzuki of the same name.

Next