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Cars and Drivers

The Death Of The “China Miracle” Hits Car Sales (GM)(F)(WMT)(GE)(MCD)(HPQ)

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By Douglas A. McIntyre Updated Published
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Blue_hillsUS car sales have been awful, running off as much as 30% recently. But, there is always China. It is big for McDonald’s (WMT), Wal-Mart (WMT), GE (GE), and Hewlett-Packard (HPQ). Everyone wins in China. So, why not GM (GM) and Ford (F)?

Too bad that car sales in China have turned rotten.

In the first part of 2008, vehicle sales in the world’s most populated country surged 20% compared with the year before. For the balance of the year they may be no better than flat. JD Power says that 2009 could be even worse.

Now that US car companies are threatened with extinction they had to hope they could sell investors on one last frontier of potentially huge growth. It looked like that would be in emerging countries, but the assumption is dying quickly.

The car market in China has not only flattened out. It has been such an attractive target the every major auto company in the world has poured in resources. And, the Chinese are putting together their own local operations to compete with all of those outsiders. The competition for the local consumer gets tougher by the year.

The "China miracle" is not something US car companies can brag about anymore.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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