Everyone’s Selling More Cars – So What?
Quick rant. One big item in the news these days is the upcoming UN Climate Change Conference in Copenhagen and whether the developed world (e.g. the US) and the developing nations (e.g. China) can come to terms on curbing greenhouse gas emissions. From what I’ve heard so far, the prospects appear dim.
Anyway, at the same time, what do I see in the headlines regarding China and US industry? Everyone is really happy because automobile sales have spiked, mostly due to government action (e.g. the stupidly named “Cash for Clunkers” subsidy program in the US; autos imported from the US are now being targeted by Chinese regulators because of the allegedly WTO-non-compliant subsidies).
Yeah! Let’s sell a lot of cars that are only marginally better for the environment than the ones sold last year! And by the way, we can employ some workers who will probably just get laid off next year when the subsidies end and the industry falls back in the toilet! Great plan – it must be good, ’cause the stock market went up!
The whole thing is depressing, but at least the price of oil has been on the rise in recent months, partly due to economic optimism but even more to do with currency fluctuations. This news was also welcome:
China will raise gasoline and diesel prices both by 480 yuan (US$70.28) per tonne from Tuesday, the National Development and Reform Commission (NDRC) announced on its website Monday.
The benchmark price of gasoline will be 7,100 yuan a tonne and that of diesel 6,360 yuan a tonne, according to the NDRC.
The retail price of gasoline will climb by 0.36 yuan per liter and that of diesel will rise by 0.41 yuan per liter. (Xinhua)
Every little bit helps, but when you have this many new cars put on the road in China every day and an industry that wields ever greater political power (already the case in the US of course), well, all I can do is calm down, take a deep breath of that crisp Fall air and . . . {cough cough}.
