BAD NEWS FROM CHINA …
|| By FITSNEWS || How does the Chinese economic slowdown affect you?
Well, if you’re an American taxpayer who helped bail out “Government Motors” (ahem, is still bailing out “Government Motors”) … you might wanna get that checkbook ready. Again.
That’s because the Chinese car market – which GM and other U.S. carmakers are relying on to sustain their growth projections – is tanking.
“China’s import car dealers saw inventory days reach a mind-blowing 143 days in May. For context, the normal average has been 24-36 days,” the website Zero Hedge reported this week.
That follow’s last Friday’s report in The Wall Street Journal indicating June passenger car sales fell 3.4 percent – only the third monthly decline in three years (and the other two were the result of a weeklong holiday and a political crisis).
“Auto executives had been forecasting 2015 sales in China to slow to a high, single-digit percentage gain over 2014, but that now looks optimistic,” the Journal‘s John D. Stoll noted.
Indeed it does. In fact the China Association of Automobile Manufacturers has slashed its 2015 growth projections from 7 percent to 3 percent – with further downward revisions possible.
What will Detroit do?
Probably nothing. After all they can just pass the bill onto you in the event their Chinese sales projections continue to implode.
As bad as things are in China, though, life is still good for Hangzhou billionaire Li Shufu – who is getting a massive incentive deal from the taxpayers of South Carolina to locate his newest Volvo manufacturing facility in the Palmetto State.
In fact Shufu’s plant will get a $70 million interchange (at a time when S.C. lawmakers are clamoring for a gas tax hike to “fix our roads”).
They get you coming and they get you going, don’t they?
Yup … and yup.
Or as Shufu might say, “you pay now!”