Now if you are going to do stimulus, China shows us how to do it! As car sales jumped 47% year over year in May, the profits at auto makers fell 28%, and revenue dropped 11% for the first 4 months of the year... but that's how you juice the numbers. Someone has to sacrifice... and after the implosion of the US auto market, the domestic sales in China continue to surge ahead of America - as the largest market in the world. Already. Via Bloomberg
- China's passenger-vehicle sales rose 47 percent in May, the biggest jump since February 2006, as tax cuts and government subsidies helped extend the country's lead over the U.S. as the world's biggest auto market this year. Chinese drivers bought 829,100 cars, sport-utility vehicles and other passenger vehicles last month, the China Association of Automobile Manufacturers said in a statement today. Overall vehicle sales rose 34 percent to 1.12 million.
- China has cut retail taxes on vehicles and handed out subsidies in rural areas after auto sales slowed on the global economy and job concerns.
- “Sales of small cars have been driving growth,” said Ricon Xia , an analyst with Daiwa Institute of Research (H.K.) Ltd. in Shanghai. “Whether automakers can reverse profit declines this year will depend on demand for big cars and heavy- duty trucks that carry bigger profit margins.”
- Combined profit at the country's top 19 automakers fell 28 percent in the first four months, while revenue declined 11 percent, according to the association. During the period, five automakers boosted profit, 10 reported declines and the rest had losses, it added.
Like 2 ships passing in the night....
- Industrywide China vehicle sales rose 14 percent to 4.96 million units in the first five months . By contrast, sales in the U.S. fell 37 percent to 3.95 million .
We'll be back China... once we can borrow from our homes again to use instead of actually attempting to save money... we'll be back.
EDIT 12:15 PM - my apologies, I forgot momentarily that money grows on trees in America. Not only are we offering 0% 5 year loans once more for vehicles through GMAC (bailed out twice by government) but if that is not enough we'd like to offer you $4500 for your new car . Mr and Mrs American citizen... you will buy a car one way or the other. Put another one on the grandkids tab and please enjoy that new car smell.
- Consumers could receive rebates of up to $4,500 for turning in their gas-guzzling cars and trucks for more fuel-efficient vehicles under a House proposal. President Barack Obama has urged Congress to approve consumer incentives for new car purchases as part of the government's efforts to reorganize General Motors Corp. and Chrysler LLC through the bankruptcy courts.
- Under the House bill, car owners could get a voucher worth $3,500 if they traded in a vehicle getting 18 miles per gallon or less for one getting at least 22 miles per gallon. The value of the voucher would grow to $4,500 if the mileage of the new car is 10 mpg higher than the old vehicle.
- Since the yearlong vehicle program is expected to cost $4 billion , lawmakers would attempt to find the additional money later this year. ( key word 'attempt'.. . pssst - its just fiat money, you don't really need to find it anywhere. Just put it on the tab )