1 billion 1st time car buyers in China

Lou Ann Hammond talks to John Batchelor, host of the John Batchelor show on KFI 640 AM from the 2008 Beijing auto show.

- 1 billion 1st time car buyers in China

- Only 45 million cars on the road

- You can only drive between the ages of 18-65 (the day you turn 65 you can no longer drive)

- Only about 10% of people finance (no credit bureau)

- There is no defaulting on loans in China

- China is starting to restrict financing to keep inflation in check, without a slowdown. China says it is not immune to US recession, and is trading more globally depending less on US.

- Congestion is big issue in Shanghai and Beijing

- General Motors was first in sales of passenger vehicles because of Wuling (think Microbus)

- VW Santana was best selling car in 2007

- In 2007 SUV sales increased 50%!

- Rick Wagoner helped open the China Automotive Energy Research Center which will support the development of a national automotive energy strategy specifically for China

- China is not beholden to the internal combustion engine

- 4-5 years ago they set up research and development for EV cars. GM showed their EV cars. They will build the Buick Lacrosse hybrid here in China.

- Toyota sells Prius here, but builds in Japan

- China supports nuclear, aka hydrogen and electricity.