China wants its car makers to develop smaller, fuel-efficient models NOT the gas guzzlers that the US Big Three produced despite all the warnings to the contrary.

“We used to believe medium-sized cars would have the biggest market in China, but actually small cars have the greatest potential in terms of energy efficiency and price,” said a senior engineer  of the Society of Automotive Engineers of China.

While Americans kept producing gas hogs, Japan quietly went about its business gaining a stronghold appealing to the fuel-conscious consumer.

Toyota expanded its presence in the US with cheap fuel efficient cars back during the 70s crude oil crisis…and never looked back. Now that prices have dropped back down, chances are America will keep driving their cows around while this time, China ALSO gains a foothold.

Chinese still want midsized sedans. In ‘06-’07 sales for small compact cars dipped while the sedan sales went up 20%.  But, that will change….or will it?

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