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Gas guzzlers a hit in China, where car sales are booming
Yahoo Finance ^ | April21, 2008 | Joe Mcdonald, AP Business Writer

Posted on 04/21/2008 2:52:18 PM PDT by NRG1973

BEIJING (AP) -- High, wide and fuel-hungry, the gleaming black Cadillac Escalade on display at the Beijing auto show is an unlikely car for an era of record oil prices. But while sport utility vehicle sales in the U.S. are tumbling, automakers are finding that for China's newly prosperous car buyers, bigger is still better.

So General Motors Corp. has made the Escalade a star of its auto-show display and is eager to get it on the market here.

"If you look at the fastest-growing market segments in China, there are two -- SUVs and luxury cars," said Joseph Y.H. Liu, GM China's vice president for sales and marketing.

Auto sales in China are booming, with analysts and automakers forecasting growth at 15-20 percent this year. But demand for the biggest vehicles is even stronger, with sales of luxury cars and SUVs expected to surge by 40-45 percent.

The phenomenon is welcome news for automakers seeing little or no growth in the United States, Europe and Japan. They also make fatter profits from sales of high-end vehicles than from economy models.

Sales have been boosted by economic growth that has topped 10 percent for five straight years and a surge in real estate and stock prices that created a new crop of Chinese billionaires.

Buyers of land yachts have also been unintended beneficiaries of a government policy meant to help the poor. Beijing has tried to shield farmers and the urban poor from high oil prices by freezing pump prices for gasoline and diesel, keeping them among the world's lowest. That takes the sting out of filling up a gas guzzler.

Gas costs 5.34 yuan (76 cents) a liter or 20.5 yuan ($2.90) a gallon.

(Excerpt) Read more at biz.yahoo.com ...


TOPICS: News/Current Events
KEYWORDS:
This is one reason why the price of crude oil will continue to skyrocket. The Chinese practice of subsidizing gasoline means that everyone wants the biggest cars. I wonder how long it will be before crude oil reaches $200.00 per barrel.
1 posted on 04/21/2008 2:52:22 PM PDT by NRG1973
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To: NRG1973

At this rate, all it will take is a couple more positive news stories - BIG oil reserve in North Dakota, HUGE natural gas reserve in New England, down to PA, etc... With good news like this, oil just keeps on going up, Up, UP!!!


2 posted on 04/21/2008 3:04:15 PM PDT by SengirV
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To: NRG1973

I would think that Won-Ton pickup trucks would do quite well in China as well.


3 posted on 04/21/2008 3:42:31 PM PDT by ~Peter
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To: ~Peter

Achieved record mpg last fillup.

No faster than 70mph (always use cruise control)
manual trans.
K&N Air filter (+1mpg)
Airbox noise inhibitor removed (33% airflow reduction)
Mobil 1 (+1mpg)
Low restriction muffler (+1mpg)


4 posted on 04/21/2008 4:09:06 PM PDT by bicyclerepair (It took a Carter to get a Reagan.)
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To: NRG1973

The cheapest I could find it here in NC was $3.47/gallon today. This has got to affect tourism this summer.


5 posted on 04/21/2008 4:13:08 PM PDT by Rebelbase (Carbon is the fifth most abundant element on the planet.)
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To: Rebelbase

$3.35 here in MD ... and headed North.


6 posted on 04/21/2008 5:36:46 PM PDT by ~Peter
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To: Rurudyne; AdmSmith; Berosus; Convert from ECUSA; dervish; Ernest_at_the_Beach; Fred Nerks; ...

Hey wait a minute... I thought the Chinese were starving to death because we are burning food instead of oil... ;’) /rimshot

Gore Won’t Ask Wealthy Hollywoodans to Alter Lifestyle to Save Planet
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Poll: Make gas guzzlers pay higher fees
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Posted on 04/03/2008 7:57:13 AM PDT by SmithL
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Retail gas hits record $3.50 a gallon as oil marches higher
AP | 04/21/08 | ADAM SCHRECK
Posted on 04/21/2008 6:13:11 PM PDT by TigerLikesRooster
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Oil spikes to record above $117 a barrel after tanker attack
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Posted on 04/21/2008 2:29:36 AM PDT by dawn53
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Attacks in Middle East, Nigeria send oil to record $117.40
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Posted on 04/21/2008 5:18:06 AM PDT by RWB Patriot
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OIL NEARS $117 A BARREL ...
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Posted on 04/21/2008 6:10:30 AM PDT by Turret Gunner A20
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Crude oil prices spike above $117 a barrel
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Posted on 04/21/2008 12:27:14 PM PDT by Red Badger
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Ahmadinejad Says Oil at $115 a Barrel is Too Low, Calls for Higher Prices
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Posted on 04/21/2008 4:49:11 PM PDT by Dawnsblood
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Russia paying price of oil strategy
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Crude Oil and Total Petroleum Imports Top 15 Countries
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Posted on 04/21/2008 1:25:16 AM PDT by Westlander
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7 posted on 04/21/2008 11:37:20 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/_____________________Profile updated Saturday, March 29, 2008)
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Gore Admits Financial ‘Stake’ In Advancing Global Warming Hysteria
Newsbusters | 4/11/08 | Noel Sheppard
Posted on 04/12/2008 7:10:55 PM PDT by dangerdoc
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Al Gore Responds to CRC, Denies Global Warming is His Meal Ticket
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8 posted on 04/21/2008 11:45:32 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/_____________________Profile updated Saturday, March 29, 2008)
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Apropos of nothing — I was running low Sunday, filled up at $3.38.9 a gallon at the warehouse club station. The price had fallen a penny by early Monday (just after midnight).


9 posted on 04/21/2008 11:47:38 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/_____________________Profile updated Saturday, March 29, 2008)
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To: SunkenCiv

We’re paying an average of $A1.41 a Litre. There are 3.7854 litres to a US gallon. So, if my maths is correct, a US gallon of gas (petrol we call it) is costing $5.3374 in Oz...of which approx 40% is TAX!

The $A - $US exchange rate is 93.7 in your favour.


10 posted on 04/22/2008 3:10:33 AM PDT by Fred Nerks (a fair dinkum aussie)
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To: NRG1973
I wonder how long it will be before crude oil reaches $200.00 per barrel.

Oh I'd say about the same time China is awarded exclusive or majority rights to Iraqi oil. Of course we'll be hearing how this is great for the U.S. and it was all part of a great strategic plan etc. Sheik/Prince Holdy U Handy will smile in approval as well. In the mean time everybody will ignore the fact we've been had by those we elect.

11 posted on 04/22/2008 3:30:09 AM PDT by cva66snipe (Proud Partisan Constitution Supporting Conservative to which I make no apologies for nor back down)
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To: Fred Nerks
I'm not sure what the total US tax is. There's a 50 cent a gallon fed gas excise tax; also each of the states has (or doesn't) additional gas excise tax, and (often) a general sales tax to boot.
Samuel Johnson. A dictionary of the English language -- He defines excise as a "hateful tax levied upon commodities, and adjudged not by the common judges of property, but wretches hired by those to whom excise is paid".

12 posted on 04/22/2008 8:26:12 AM PDT by SunkenCiv (https://secure.freerepublic.com/donate/_____________________Profile updated Saturday, March 29, 2008)
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