Thursday, June 18, 2009

Driving west to east

In 2004, 4.8m cars were sold in China and 17m in the USA. This year car sales in China are projected to be 11m, compared with 10.2m in the USA. Nevertheless, foreign brands still account for three-quarters of the cars sold in China. Three young tigers are doing their best to break this stranglehold: Li Shufu whose company is called Geely, Wang Chuanfu of BYD (in which Warren Buffett owns a large stake) and Yin Tongyao of Chery, the number one car exporter in China. The crisis at western car manufacturers is also tempting Chinese players: Geely is trying to buy Volvo from Ford and a Sichuan based company called Tengzhong is bidding for Hummer. Ho hum...


Blogger Eurodog said...

How many cars can one family own in China?

7:20 am  
Blogger Whispering Walls said...

Bonjour ED - it's an interesting question. I heard on the radio that there's a one dog per family policy in Beijing

8:18 am  
Blogger Eurodog said...

Really! I suppose that's why so many dogs end up in restaurants.

9:13 am  
Blogger Welshcakes Limoncello said...

Do you think all the big companies will change hands in this recession, WW? - Those that survive, that is.

4:34 pm  
Blogger Whispering Walls said...

Hi WL - tout passe, tout casse, tout lasse - such is life and such is an economic cycle so invariably assets come up for sale.

8:09 am  

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