The U.S. was the world's largest consumer of passenger vehicles. Until 2009, that is. When the global financial crisis hit, U.S. car sales dipped to levels not seen in decades. But CHINA kept chugging along, moving ahead of the U.S. in total sales, to 13.6 million in 2009 (vs 10.4 million in the States). BUICK, having survived the GM bankruptcy, is No. 2 in the China market behind VW. In 2009, Buick sold 440,000 vehicles there (compared with 102,000 in the States). The average customer ALSO pays cash for their car. Fewer than 10% buy on credit. In fact, most dealerships employ personal whose sole job is COUNTING THE CASH. If a Buick LaCrosse sells for 280,000 yuan (roughly $41,000), you can understand why customers bring their cash into dealerships in suitcases.
In 1998 there were just 33 Buick dealerships in the country. Today there are 385. Just the opposite with what has happened to our dealers. Now when you look at the BIG PICTURE you get the idea of why PONTIAC was shelved. Also just a fraction of the population own cars (there are 20 cars per 10,000 people), the country's population of 1.4 billion has auto executives salivating at the prospects of what could be in China!
