The next round of stimulus from Beijing is putting Chinese cars back on investment screens. We talk about how to play the next wave in Asian cars on today’s Trading the Globe (10:20 EST, CNBC).
For all the anxiety about growth in the Chinese car market slowing to a trickle of 2% during the first quarter of 2012 – down from a 35% jump in 2010 – China remains the place to sell cars.
Markets across Europe and Asia were inching higher Friday, although continued concern about the euro zone economy and spiking oil prices continued to weigh on investors.
Auto sales in India fell last month, according to a recent article in the Times of India. But when economies sputter, consumers turn to cheaper cars, and lower growth in India could give Tata Motors (TTM, quote) the same help Toyota Motors (TM, quote) and Volkswagon (VLKAY, quote) got in other markets.
BMW, Audi and Mercedes Benz, all German automakers, are the three top selling luxury brands in the world. With sales growing, Audi, owned by Volkswagen (VLKAY, quote) is projected to overtake Mercedes Benz (DDAIF, quote) for the second spot, according to an article in The Wall Street Journal, by Christoph Rauwald and Nico Schmidt.
One of the few pleasant developments of the euro crisis is that German consumers continue to spend on domestic goods and services.
Legendary investor Jim Rogers once stated that a weak currency was the sign of a weak economy, which was the sign of a weak government. Due to the strong Japanese yen, Toyota Motors (TM, quote) is operating at a significant disadvantage as German car makers such as Volkswagen (VLKAY, quote) and Mercedes Benz (DDAIF, quote) benefit from the weak euro.