Car Makers Tout For Cash

Carmakers everywhere are on the take, it seems. While America’s big three were petitioning the U.S. Congress for bailout aid, China’s were doing the same, asking for aid and for lower sales taxes, which can account for 50% of the sticker price. This year China’s car market is forecast to grow at 5%. American automakers would take that in a heart beat, but China’s have become used to the sort of growth rate that has seen sales increase fivefold in the past eight years. That has brought fierce price competition. Gasgoo.com, a B2B industry site controlled by Chery Automobile, China’s largest independent car maker, estimates that two out of five of China’s car dealers are losing money and nearly a third could close in the coming months.  This could force a wave of consolidation over the next one to two years among the country’s  100 auto makers, especially the smaller and more inefficient ones propped up by provincial governments,

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