Think demand for cars has evaporated? Think again

In 2009 10.7 million units will be sold in China, and roughly the same, perhaps slightly less in the USA. Now beyond the number of cars already on the roads of the world, think about adding another 20 million (that's just counting two countries here). 20 million cars that are driven virtually every day, year after year.

Think that doesn't have any impact on oil supplies? Think the demand problem is gone and withj oil prices below $50 we don't have to worry about demand. We have a breathing period of a few months, before oil prices will start spiking upward again.

clipped from news.yahoo.com SHANGHAI – China's monthly vehicle sales surpassed those in the United States for the first time in January, moving this country closer to becoming the world's biggest auto market, data released Tuesday showed. With its growing middle class and vast potential as a consumer market, China is vital for General Motors, Volkswagen and Toyota as they count on demand here to offset weakness in the U.S. and elsewhere. But China's ascent in the global auto market has been hastened by the plunge in U.S. auto sales, which tumbled 37 percent in January to a 26-year low of 656,976 units. Chinese vehicle sales also have cooled, but hardly as dramatically. In January, 735,000 vehicles were sold, down 14.4 percent from a monthly record 860,000 last January, the China Association of Automobile Manufacturers said.