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China's Cars, Accelerating A Global Demand for Fuel

By Ariana Eunjung Cha
Washington Post Foreign Service
Monday, July 28, 2008; A01

SONGJIANG, China -- Nodding his head to the disco music blaring out of his car's nine speakers, Zhang Linsen swings the shiny, black Hummer H2 out of his company's gates and on to the spacious four-lane road.

Running a hand over his closely shaved head, Zhang scans the expanse of high-end suburban offices and villas that a decade ago was just another patch of farmland outside of Shanghai. To his left is a royal blue sedan with a couple and a baby, in front of him a lone young woman being chauffeured in a van.

"In China, size matters," says Zhang, the 44-year-old founder of a media and graphic design company. "People want to have a car that shows off their status in society. No one wants to buy small."

Zhang grasps the wheels of his Hummer, called "hanma" or "fierce horse" in Chinese, and hits the accelerator.

Car ownership in China is exploding, and it's not only cars but also sport-utility vehicles, pickup trucks and other gas-guzzling rides. Elsewhere in the world, the popularity of these vehicles has tumbled as the cost of oil has soared. But in China, the number of SUVs sold rose 43 percent in May compared with the previous year, and full-size sedans were up 15 percent. Indeed, China's demand for gas is much of the reason for the dramatic run-up in global oil prices.

China alone accounts for about 40 percent of the world's recent increase in demand for oil, burning through twice as much now as it did a decade ago. Fifteen years ago, there were almost no private cars in the country. By the end of last year, the number had reached 15.2 million.

There are now more Buicks -- the venerable, boat-like American luxury car of years past -- sold in China than in the United States. Demand for Hummers has been so strong that starting this year, Chinese consumers can buy a similar military-style vehicle called the Predator at more than 25 new dealerships.

Much more here: http://www.washingtonpost.com/wp-dyn/content/article/2008/07/27/AR2008072701911_pf.html
 

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"Oil-producing countries are even more generous to their residents. In Venezuela, gasoline costs 12 cents a gallon. In Iran, it costs 41 cents. In Saudi Arabia, it costs 47 cents; in Russia, $3.90."
I can't even imagine .12 cents a gallon. It would cost me $1.44 to fill my tank. that is unreal.

I kind of wish our gas was cheapened by subsidies, but we wouldnt' get any further in alternative energy sources untill the earth was sucked dry of oil...
 

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Well, so how come it's now necessary to sell Hummer? Can't exports save it? It would be just like everything else at GM. Global Hummer subsidizes Hummer-NA. Even better since they're getting paid in currencies other than they dollar. Size-as-status-symbol still matters everywhere else in the world, but in the US and population-declining European countries. C'mon GM, get your act together and make the most of Hummer instead of "selling" it (giving it away for pennies).
GM couldn't sell a Camry if their life depended on it, I swear. Hand over Toyota operations to Rick and his Board of Fools and watch them ruin it in a year.
 

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China sounds like the perfect market for GM. Instead of cutting production of large SUV's here why not just send all the extra to China? Seems to me like GM might be missing a golden opportunity here. Is chevrolet a brand in china? i know they have buick and Hummer obviously but do they sell chevy's too? Do they sell Tahoes over there? If not they need to be on the next boat over there!
 

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China sounds like the perfect market for GM. Instead of cutting production of large SUV's here why not just send all the extra to China? Seems to me like GM might be missing a golden opportunity here. Is chevrolet a brand in china? i know they have buick and Hummer obviously but do they sell chevy's too? Do they sell Tahoes over there? If not they need to be on the next boat over there!
i agree with you. I mean i read somewhere that it is expensive, but if guys like this man in the article are willing to spend $$$$$$$ on a hummer from the US I'm sure that our SUVs would be at home over there.
 
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