| Many economists told us that once China's middle | | | | cart these days. |
| class came up to speed they'd be big buyers and | | | | The Chinese are poised to increase their car |
| we'd be selling to them. Well, it does not look like that is | | | | manufacturing industry by 10% or more in 2009, and |
| going to happen, which part you ask? Neither, you see | | | | they are well on their way to doing just that. A friend |
| China is not going to develop much of a middle class | | | | and local economist here recently mentioned to me |
| for a long time, and even if they do, don't expect all our | | | | that Franklin Templeton's famous Mark Mobius, who |
| factories to be going back to work anytime soon. You | | | | specializes in emerging markets believes that the |
| see, China is already building airliners, cars, computers, | | | | Chinese Auto Sector is the right place to invest right |
| and will be competing for all of our industries. | | | | now, especially consider that 75% of China's car |
| For instance, China is set to produce some 10.8 million | | | | buyers are folks that are buying their very first car, |
| cars in 2008, but American Car Makers will be well | | | | and over 85% of them are paying cash, no credit. The |
| under 10 million total cars sold in 2009 [current | | | | Chinese People are big savers, and the cars sell often |
| projections]. Did you know that the Chinese shipped | | | | for under $5,000. |
| more cars than any other car maker, Worldwide, in the | | | | Some believe that China's automakers cannot sustain |
| first quarter of 2009, which is a whopping 35% growth, | | | | this level of growth indefinitely due to their coming |
| while US Automakers felt a 40% drop in first quarter | | | | inflation, but for now, it's a good bet, that their auto |
| sales, and with all the tax incentives, give-aways, | | | | sales will be driving forward well into the foreseeable |
| rebates, and discounting going on, it's as if they cannot | | | | future. So, do not expect the US to be out selling the |
| even give them away. You can buy a brand new | | | | Chinese anytime soon. Please consider all this. |
| Chevrolet Camaro for less than a fully equipped golf | | | | |