China Going Crazy for SUVs


The SUV craze has hopped the Pacific Ocean and headed to China:

Gone are the days when buyers in China, the world’s largest car market since 2009, mostly purchased fuel-sipping compacts and subcompacts. Their shift toward larger and ever-more-numerous vehicles is not only driving up China’s oil import bill and contributing to pollution but is also fattening automakers’ profits — and manufacturers made clear over the weekend that they plan to infuse the market with large vehicles.

General Motors announced that it would introduce nine new or restyled S.U.V. models in China in the next five years, and disclosed that it would build four more factories and add 6,000 jobs to accommodate its ever-rising sales here.

This is why global consumption of oil doesn’t respond very strongly to higher prices. As incomes go up in developing countries, demand for oil also goes up, and this offsets the reduction in demand due to higher oil prices. You can see this vividly in China, where incomes are increasing steadily and, sure enough, the newly emerging middle class wants SUVs even though world oil prices remain pretty high.

So what does reduce oil demand? Lower incomes, of course. Recessions reduce oil demand quite nicely. That’s not the answer anyone wants, but it seems to be the correct one.

DOES IT FEEL LIKE POLITICS IS AT A BREAKING POINT?

Headshot of Editor in Chief of Mother Jones, Clara Jeffery

It sure feels that way to me, and here at Mother Jones, we’ve been thinking a lot about what journalism needs to do differently, and how we can have the biggest impact.

We kept coming back to one word: corruption. Democracy and the rule of law being undermined by those with wealth and power for their own gain. So we're launching an ambitious Mother Jones Corruption Project to do deep, time-intensive reporting on systemic corruption, and asking the MoJo community to help crowdfund it.

We aim to hire, build a team, and give them the time and space needed to understand how we got here and how we might get out. We want to dig into the forces and decisions that have allowed massive conflicts of interest, influence peddling, and win-at-all-costs politics to flourish.

It's unlike anything we've done, and we have seed funding to get started, but we're looking to raise $500,000 from readers by July when we'll be making key budgeting decisions—and the more resources we have by then, the deeper we can dig. If our plan sounds good to you, please help kickstart it with a tax-deductible donation today.

Thanks for reading—whether or not you can pitch in today, or ever, I'm glad you're with us.

Signed by Clara Jeffery

Clara Jeffery, Editor-in-Chief

We Recommend

Latest

Sign up for our newsletters

Subscribe and we'll send Mother Jones straight to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate

Share your feedback: We’re planning to launch a new version of the comments section. Help us test it.