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US car culture rides into the mainland

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Dressed in his best suit, Geng Lin was full of excitement as he filled in the forms to buy an eight-seater minivan for 338,000 yuan (about HK$317,700) in a General Motors (GM) Shanghai showroom.

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'This is my first car purchase,' said Mr Geng, a 46-year-old department chief at an electronics factory. 'I thought long and hard about it. I like the GL 8 because I consider American cars safe and reliable.

'I will use it for work and pleasure. The many seats mean that it is useful for meeting and delivering friends and family.'

Mr Geng, who is taking a five-year loan equal to 70 per cent of the purchase price, is one of the rapidly growing army of car owners in China. According to latest official figures, first-quarter vehicle sales were up 52 per cent to 974,800 - including 383,400 passenger cars, double the figure for the same period last year.

China is eagerly embracing US-style car culture, complete with glitzy advertising, slick promotions, extensive media coverage and the full backing of the government, which sees the vehicle sector as a pillar industry of an advanced economy and cars as the key product, after homes, to promote consumer spending.

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Shanghai, which has won the right to host a Formula One race and is building a track, has about a dozen car magazines. With glossy photographs of the latest domestic and foreign models being driven through the Swiss Alps and parked in front of French chateaux, they promote cars as chic, smart and symbols of wealth and success.

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