China's annual auto sales increase to 10M; U.S. sales fall to 12.5M

[HoosierRon]

Official: China's domestic auto sales to hit 10 million this year

YANTAI, June 21 (Xinhua) -- China's domestic automobile sales is expected to grow by 15 percent to hit 10 million this year, backed by strong demand for passenger cars, an official with the China Association of Automobile Manufacturers said on Saturday.

China's fast-growing economy created sound environment for the development of the automobile industry, Dong Yang, vice chairman of the association, said at an industry meeting held in the coastal city of Yantai in the eastern Shandong Province.

U.S. Auto Sales in June May Decline to 15-Year Low

June 18 (Bloomberg) -- U.S. vehicle sales may plunge to their lowest in more than 15 years this month as soaring gasoline prices leave dealers with too many big trucks and a shortage of fuel-efficient small cars, analysts said.

June's annualized sales rate may drop to between 12.5 million and 13 million vehicles, according to reports from Citigroup analyst Itay Michaeli and Deutsche Bank analyst Rod Lache. That would be the lowest since the 12-million rate in March 1993 and as much as 20 percent below June 2007 levels.

[I-Love-Pontiac]

These statistics are in no way connected.

[HoosierRon]

Originally Posted by I-Love-Pontiac

These statistics are in no way connected.

They certainly are not connected in the sense that someone took 2 million cars from the U.S. and shipped them to China.

But the U.S. trade deficit with China last year was $256,207,700,000. That is $256 billion that Americans do not have to spend on cars, and $256 billion that Chinese do have to spend on cars.

[GMC-70]

Originally Posted by HoosierRon

They certainly are not connected in the sense that someone took 2 million cars from the U.S. and shipped them to China.

But the U.S. trade deficit with China last year was $256,207,700,000. That is $256 billion that Americans do not have to spend on cars, and $256 billion that Chinese do have to spend on cars.

And people still think that purchasing imports has no effect on the economy

[jkennedy293]

With the U.S. auto market stagnant or shrinking, it is no wonder why GM doesn't really care about their products here.

I suspect that by 2015, the U.S. market will make up less than 25% of GM's sales.

[Mikkoo]

Some good news for GM, amongst the continued deterioration of the US market. Five years from now, GM might sell more vehicles in China, than in the USA. This is a huge growing
market that GM has done exceptionally well.

[jkennedy293]

Originally Posted by GMC-70

And people still think that purchasing imports has no effect on the economy

We spend far more on imported consumer goods than we do on autos and heavy machinery. Just look around your house, every TV sold in America is imported.

[logansowner]

What gets me is why the cars GM sells in China are so much nicer than what they will sell to us. Those Buick's they sell there are gorgeous.

[Butz]

Originally Posted by HoosierRon

They certainly are not connected in the sense that someone took 2 million cars from the U.S. and shipped them to China.

But the U.S. trade deficit with China last year was $256,207,700,000. That is $256 billion that Americans do not have to spend on cars, and $256 billion that Chinese do have to spend on cars.

$256 billion should of bought more cars in China, I wonder what China does with all the money?

[logansowner]

Originally Posted by jkennedy293

We spend far more on imported consumer goods than we do on autos and heavy machinery. Just look around your house, every TV sold in America is imported.

This is true, but at the same time, look what would happen to the economy if everything suddenly costs 2-3 times as much.

That $1500 LCD TV in someones living room would likely cost well over twice as much if it was made in the US...meaning it likely wouldn't have been bought in the first place. So we can destroy the economy slowly like we are now, or instantly if everything had to be made here for twice the money.

[GMC-70]

Originally Posted by jkennedy293

We spend far more on imported consumer goods than we do on autos and heavy machinery. Just look around your house, every TV sold in America is imported.

I know and I am not happy about it but in many cases you have no choice. Also, I was just generalizing a statement meant to mean too much money is flowing out of this country and not enough is coming back in. When this is the case it eventually catches up with the economy. The housing boom bailed us out from 2000-2005 with all the equity but what's gonna bail us out now???

[joemac]

Originally Posted by jkennedy293

We spend far more on imported consumer goods than we do on autos and heavy machinery. Just look around your house, every TV sold in America is imported.

Fortunately or unfortunately the money gravy train out of this country is not infinite. At some point there's not enough money or jobs to support this negative cash flow from America. Thus the realization will hit when the middle class is non-existent and we can no longer pay for the cheap imported stuff.

[TJ95GAGT]

Hasn't the Chinese consumer enjoyed no increase in gas prices over the past 2 years, until recently the gov't was going to increase the price passed on to consumers? Or was that another Asian country?

[joemac]

Originally Posted by logansowner

What gets me is why the cars GM sells in China are so much nicer than what they will sell to us. Those Buick's they sell there are gorgeous.

Costs. Hard costs. It has to be. I can't imagine labor, components, and assemblies for vehicles aren't dramatically cheaper produced in China versus the US.

[HoosierRon]

Originally Posted by logansowner

This is true, but at the same time, look what would happen to the economy if everything suddenly costs 2-3 times as much.

That $1500 LCD TV in someones living room would likely cost well over twice as much if it was made in the US...meaning it likely wouldn't have been bought in the first place. So we can destroy the economy slowly like we are now, or instantly if everything had to be made here for twice the money.

Up until 30 years ago, most televisions WERE made in the U.S. And somehow, the economy not only survived, it thrived. Real wages of working Americans actually grew. America became a superpower.

Then we exported manufacturing, and look what happened: we cannot afford a TV unless it is made in a third world country. Real wages are flat. Our auto industry is dying. What is next: Americans cannot afford cars unless they are imported from China?