Chinese Auto Market Overtakes U.S.

Chinese Auto Market Overtakes U.S.

By REUTERS
Published: January 8, 2010

http://managingthedragon.com/wp-cont...ng_traffic.JPG

* China's 13.5 mln-plus sales top previous 10 mln target
* Overtakes U.S. as world's top auto market
* Growth in 2010 seen slower but solid (Adds analysts expectations, forecast for 2010)

BEIJING/SHANGHAI, Jan 8 (Reuters) - China sold more than 13.5 million vehicles in 2009, the official Xinhua news agency said on Friday, overtaking the United States to become the world's largest auto market as government policy initiatives spurred demand.

The final figure compared with annual sales of 10.4 million cars and light truck sold in the United States, the lowest level in 27 years. It was also well above the 10 million in vehicle sales that China had originally targeted for 2009.

The Chinese tally, which also includes heavy vehicles, is still higher than that of the U.S. after deducting roughly 650,000 units of heavy trucks, according to Orient Securities, making it the world's biggest auto market.

The country's official auto sales data for 2009 is scheduled to be released by the China Association of Automobile Manufacturers next week, but the figure reported by Xinhua is in line with analysts' expectations.

Industry observers attributed China's strong auto sales largely to government policy initiatives, which had effectively lifted market sentiment and attracted buyers back to showrooms.

A low comparative base in 2008, when car sales growth slowed to a single-digit rate for the first time in at least 10 years, also helped inflate the 2009 rate, they said.

China has been a major bright spot amid global recession and a safe haven for battered industry giants such as General Motors and Ford Motor. (NYSE:F PRS) (NYSE:F PRA) (NYSE:F)

The market was likely to return to a slower but more rational growth rate of roughly 10 percent in 2010 on continued policy support from the government even though the renewed tax incentives for small cars were not as aggressive as expected, analysts said.

China overtakes Germany as biggest exporter

The 2009 data reflect the ability of its low-cost manufacturers to keep selling abroad despite the global economic downturn.

From the Associated Press

3:31 AM PST, January 10, 2010

BEIJING — China overtook Germany as the world's biggest exporter after exports rose in December for the first time in 14 months, data showed today, in a new sign of the rapid Chinese rise as a global economic force.

Chinese exports in the last month of 2009 jumped 17.7 percent from a year earlier, the state Xinhua News Agency and government television said. That made total exports for the year just over $1.2 trillion, ahead of the $1.17 trillion forecast last month for Germany by that country's foreign trade organization, BGA.

Economists and Germany's national chamber of commerce said earlier it was likely to lose its longtime crown as top exporter.

China's new status is largely symbolic but reflects the ability of its resilient, low-cost manufacturers to keep selling abroad despite a collapse in global consumer demand due to the financial crisis.

China's politically sensitive trade surplus shrank by 34.2 percent in 2009 to $196.07 billion, Xinhua said. That reflected China's stronger economic growth, driven by a 4 trillion yuan ($586 billion) stimulus, and demand for imported raw materials and consumer goods at a time when demand in the United States and other foreign markets is weaker.

The December export rebound was an "important turning point," a customs agency economist, Huang Guohua, said on the state broadcaster CCTV.

"We can say that China's export enterprises have completely emerged from their all-time low in exports," Huang said.

Even though China overtook Germany in 2009 as top exporter, CCTV said its total 2009 trade fell 13.9 percent from 2008.

China car sales surpass U.S., Peugeot sees upturn

http://www.reuters.com/resources/r/?...TOS-CHINASALES

PARIS (Reuters) - China's auto sales surged past the United States to reach record levels in 2009, industry figures showed on Monday, underscoring China's importance to the global auto industry as the world's biggest market.

China

The figures came as PSA Peugeot Citroen of France said markets were expected to show signs of recovery around the world in 2010, while Volkswagen AG said it aims to at least double its U.S. sales in coming years.

After a year in which Chinese automakers made key acquisitions abroad, Beijing's renewed incentives to bolster demand will likely keep it as a bright spot for car makers battered by the financial crisis.

Vehicle sales in the country came to a record 13.6 million units in 2009, the China Association of Automobile Manufacturers said, well above a previous target of 10 million units and compared with annual sales of 10.4 million cars and light trucks in the United States, the lowest level in 27 years.

The Chinese tally, which also includes heavy vehicles, is still higher than that of the United States after deducting roughly 650,000 units of heavy trucks, Orient Securities said.

"Sales have been extremely hot in most parts of last year with little seasonal changes. Many people have to wait for weeks or even months to get their cars," said Qin Xuwen, an analyst at Orient.

The past year has seen Chinese automakers venturing on to the global stage for the first time in a major way, ready to snap up brands such as Volvo and Hummer which they previously admired from afar.

GLIMMERS OF IMPROVEMENT

Peugeot said Europe would miss out on any global upturn, forecasting a 1-digit percentage decline as state-funded scrappage schemes are removed or phased out.

"The second half should see some glimmers of improvement," it said in a statement, reporting a 2.2 percent decline in 2009 sales of new vehicles and "complete knock down" (CKD) units to 3,188,000.

It was boosted by newer models such as the Citroen C3 Picasso, its position in light commercial vehicles and its low CO2-emission line-up.

PSA shares were up 2.7 percent to 27.22 euros in early trading, taking its 2010 gain so far to 15 percent.

PSA is in cooperation talks with Mitsubishi Motors Corp of Japan.

Volkswagen, Europe's biggest car maker, said it aims to more than double its sales in the United States within the next three to four years, the head of its U.S. business said.

"We will sell 400,000 to 450,000 vehicles in 2012/13," Stefan Jacoby said on Sunday at an event in Washington, D.C. ahead of the Detroit Auto Show. VW sold 213,000 cars in the United States last year.

Meanwhile, Formula One supremo Bernie Ecclestone and investment company Genii Capital will soon have initial financing to show GM they can fund a purchase of Saab, according to daily Dagens Industri.

The paper said Ecclestone and Genii would have between 500 million Swedish crowns ($70 million) and 1 billion crowns in an account in a couple of days. However, it was not clear whether the group had sent in a formal bid for the loss-making Swedish car firm.

"I have had contacts with GM, who have given us a deadline of the beginning of this week, which I interpret as Monday through Wednesday," spokesman Lars Carlstrom said.

China supplanting the U.S. as World’s Largest Auto Market

By Judi McLeod Monday, January 11, 2010

http://www.canadafreepress.com/image...over011110.jpg

There’s a picture of a soldier from the People’s Republic of China on this morning’s Drudge Report, depicting, Internet style, how China has finally ended the U.S.’s reign as the world’s largest auto market.

Had Drudge and Bloomberg.com, who broke the story, been more journalistically correct, the lone soldier’s picture would have been flanked by those of Obama bagman George Soroshttp://images.intellitxt.com/ast/adTypes/2_bing.gif and UN Poster Boy, Canadian-in-China Maurice Strong.

For it is a matter of fact that the People’s Republic of China did not naturally nor honestly win the race as world’s largest auto market, Soros and Strong made it happen.

The intent of the deadly anti-American duo back in 2006 was to flood the American market with cheap Chinese made cars.

While Chicoms in the automaking industry cheated by stealing blueprints from North American competitors, Soros and Strong were boasting about how cheap econo-box cars from Communist China would decimate Ford, Chrysler and GM.

The “Poor Man’s Wheels”, the Chery originated from yet another copycat China endeavour. “The Chery is a knockoff of the South Korean Spark, sold in the U.S. in partnership with General Motors.”(Wall Street Journal, March 1, 2006. “GM filed a lawsuit against Chery Automobile Co. for piracy of the car developed by its South Korean Daewoo.”

This chain of events took place back in the days before Barack Obama became the proud owner of the American car industry.

Whether Obama was complicit in the hijacking of the American auto industry when he was still an Illinois senator, is a matter for speculation.
“The lawsuit launched in the name of GM Daewoo Auto & Technology Co. Ltd., contends Chery’s QQ copied the design of Daewoo’s Matiz, while Chery claims it developed the QQ on its own, GM’s investigation results showed the two vehicles “shared remarkably identical body structure, exterior design, interior design and key components.”

Spark knockoff or not, the Chery QQ was replacing a lot of bicycles in pollution challenged Beijing. Some 50,000 sold in China in 2005, and while Chery exports included Iran, Iraq, Bangladesh, Cuba, Syria and Malaysia, the Chery which could be bought in China for $3,600 was headed for America wearing a $20,000 price-tag.

According to WSJ, the plan was to sell 250,000 Cherys in the U.S. in the first year through 250 dealerships, with a target of 1 million by 2010.

Canada Free Press (CFP) was sending out warning signals back in February of 2007: “Patriots beware”: Coming your way soon, `The Hijacking of America’.

“Seamless and unfolding as this is being written, the Hijacking of America is two-prong in nature, the pandemic hysteria of global warming combined with an American market flooded by cars manufactured by the Peoples’ Republic of China.: (Canada Free Press, Feb. 16, 2007).

For decades Soros and Strong have been America’s loudest detractors. Soros has openly gloated about the suffering of the American people in the current recession. Strong is infamous for stating that in order for humanity to survive, it may be necessary “for industrial civilization to collapse.”

Their dream came true today.

“China supplanted the U.S. as the world’s largest auto market after its 2009 vehicle sales jumped 46 percent, ending more than a century of American dominance that started with the Model T Ford.”
(Bloomberg.com, Jan. 11, 2010).

“The nation’s sales of passenger cars, buses and trucks rose to 13.6 million, the fastest pace in at least 10 years, according to the China Association of Automobile Manufacturers. In the U.S., sales slumped 21 percent to 10.4 million, the fewest since 1982, according to Autodate Corp.

“China’s vehicle sales have surged since 1999 as economic growth averaging more than 9 percent a year has helped automakers including General Motors Co. and Volkswagen AG compensate for slumping demand in the U.S. and Europe. The market will likely remain the world’s largest, even as sales slow this year on a reduction in tax cuts, according to Booz & Co.

“Henry Ford introduced the Model T in 1908 as the world’s first automobile affordable for a mass market. The car was produced at the Piquette Plant in Detroit, helping the city become synonymous with the auto industry. GM, also based in the city, grew into the world’s largest automaker.

“The U.S. has since lost out to Asian carmakers producing cheaper and more fuel-efficient models. Toyota Motor Corp. ended GM’s 77-year reign as the biggest automaker in 2008. General Motors Corp.http://images.intellitxt.com/ast/adTypes/2_bing.gif and Chrysler also both filed for bankruptcy as the worst recession since the Great depression sapped auto sales.”

Wonder how much money was made by the hatred of a strong United States of America by Soros and Strong?

Knowing how China had help in supplanting the U.S. as the world’s largest auto market, some would call it treason.

having ridden in a number of Cabs in China...their fleet cars are pure shit. They have the fit and finish of a 1976 AMC pacer. Pure, dogshit, rattle traps.

Of course, it's been 5 years since I've been to China and they've probably stolen better designs by now. This of course doesn't mention all the GM, Ford as well as EU vendors who moved to China. I'm sure they'll have top notch stuff in a few years.

bump

Official data confirm China as world's biggest auto producer, consumer, challenges remain

www.chinaview.cn 2010-01-11 16:11:14

by Xinhua writer Liu Jie

BEIJING, Jan. 11 (Xinhua) -- Official figures Monday confirmed China had overtaken the United States to become the world's top auto maker and market in 2009 boosted by government stimulus measures.

The China Association of Automobile Manufacturers (CAAM) announced annual sales rose 46.15 percent year on year to 13.64 million units . Output increased 48.3 percent to 13.79 million units.

Passenger car sales were up 52.93 percent to 10.33 million units, and production was 10.38 million units, up 54.11 percent year on year.

The brisk sales in China is in contrast with the United States where 10.43 million units were sold last year, 2.8 million units less than in 2008, as the global financial crisis kept U.S. consumers out of the showroom.

The three top-selling brands last year were Shanghai Volkswagen, FAW Volkswagen and Shanghai General Motors -- all joint venture brands between Chinese auto makers and the German or U.S. counterparts.

"China's market still enjoyed abundant potential, as living standards improved and the average auto ownership remained low," Dong Yang, CAAM deputy chairman told Xinhua.

The industry would continue to see rapid growth in the next decade as it had become a pillar of the national economy, he said.

To boost the sluggish auto market in 2008 and spur the use of clean and fuel-efficient cars, the government announced in January last year that it would halve the purchase tax to 5 percent on vehicles with a displacement of less than 1.6 liters.

Rural consumers got up to 5,000 yuan (735 U.S. dollars) in government subsidies for vehicles with a displacement under 1.3 liters.

The annual revenue from auto purchase tax was expected to surpass 110 billion yuan, a rise of 10 billion yuan year on year, as more units were sold, analyst said.

Besides policy incentives, the underlying reason behind the sales boom was that the consumption structure was improved while housing and traveling costs increased, said Yao Jingyuan, chief economist with the National Bureau of Statistics.

"It would profoundly impact the Chinese auto market," he said.

Brisk sales in China also allowed the world's leading auto makers report double-digit growth in China last year despite bleak pictures in other parts of the world.

Against the backdrop of 15-percent slump worldwide, Ford reported a 44-percent sales rise to 440,619 units in China in 2009.

General Motors (GM)'s sales rose 66.9 percent to a record high of 1.82 million units in China. The German auto maker Volkswagen AG sold 1.4 million units in China, up 36.7 percent from a year earlier.

Since the sales in 2009 would overdraw demands for this year and next, and with the less aggressive tax incentives for 2010, sales expansion was expected to slow remarkably this year, said Huang Yonghe, analyst with the China Automotive Technology and Research Center.

Dong Yang estimated the auto sales growth would retreat to 10 percent to reach 15 million units in 2010.

"Despite China's top position in sales, there are still distance to go before it becomes a real auto giant, as it does not own the state-of-the-art technologies nor world-famous brands," said Dong Yang.

As part of its "going global" strategy, Geely, China's largest privately-owned car maker, is close to finalizing a deal to buy Volvo to acquire the new energy technology and access the world auto market.

The Beijing Automotive Industry Holding purchased some assets of GM's Saab in December. The Sichuan Tengzhong Heavy Industrial also has agreed to take over Hummer brand.

Acquiring foreign brands could help accelerate China's pace of technological innovation, but it could not be a shortcut to the global stage, said Han Lei, deputy director of the Society of Automotive Engineering of China.

"We can not simply copy foreign brand's technology and management expertise, but use them as a basis to develop our own model," he said.

The unprecedented boom also boosted producer's morale for further expansion.

"The Chinese auto makers added the capacity by 30 percent to 20million units in 2009, leaving their bitter memories of job cuts and shuttered business far behind," said Wei Wenqing, vice managerof the Dongfeng Citroen Motor Corporation.

Fuel-efficient cars have already shown some signs of overheating, as the demand for auto with displacement less than 1.6 liters was about 3 million units before 2011, less than half of the capacity of 7 million units, said Jia Xinguang, auto industry analyst.

"Since this market is largely affected by government policies, uncertainty and risks remain," he said.