Chinese Car Dealers Cry, Close

Ever wondered why cars can be so cheap in China? Now we know why: More and more cars are being sold at a loss in China, Gasgoo reports. In WTO terms, this will probably be misinterpreted as domestic dump(l)ing. While Chinese dealers are accustomed to the same clear-the decks strategies at year’s end as their Western colleagues, the price cuts come a bit too early in the now Middling Kingdom.
Like their Western brethren, Chinese dealers are used to profit margins between 3 percent and zilch. But now, more often than not, it’s south of nada. No wonder many Chinese dealers are following the worldwide trend, close their lot, and seek other employment. Like teaching English (see picture.) A third of them are expected to close shop by year’s end. The more vociferous ones are blaming the manufacturers for overstocking and too demanding sales targets. A familiar song for Western experts. A survey says that over 40 percent of Chinese car dealers in China make no money. A familiar song for Western experts. Ah, the joys of capitalism!

(Picture courtesy d_j_kingpin @ flickr.com)