New-car sales growth has slowed quite a bit in China over the last couple of years, but luxury cars -- like other luxury goods -- have been a shining exception. Now, though, luxury-good makers are under pressure, as China's new president has cracked down on lavishly spending bureaucrats.
Does that spell trouble for automakers like General Motors (NYSE:GM) and Volkswagen (NASDAQOTH:VWAGY), which are spending big to bring more luxury cars to China? In this video, Fool.com contributor John Rosevear looks at the state of China's luxury-car markets -- and at whether this crackdown is likely to be a big deal for the big automakers.
Fool contributor John Rosevear owns shares of General Motors. Follow him on Twitter at @jrosevear. The Motley Fool recommends General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.