The email sent will contain a link to this article, the article title, and an article excerpt (if available). For security reasons, your IP address will also be included in the sent email.
NEW BUSINESS: "China: Booming Car Sales, Tiny Profits; The small, inexpensive autos favored in the soon-to-be No. 1 market make it tough to make a buck," by Ian Rowley, BusinessWeek, 7 September 2009.
Analysts say China has overtaken the U.S. already and for here on out as THE big global car market.
But big surprise: selling to the bottom of the pyramid means you sell many units at low rates of profit. Many of these cars earn manufacturers only $100.
Then again, low margins have been a hallmark in the U.S. for a while. So where is the profit? Maintenance and financing, the former for the dealers and the latter for the car companies.
Evolutions to come, winners uncertain.
Return to Article
