The Chinese are Coming !

  1. 13,300 Posts.
    lightbulb Created with Sketch. 769
    In the 60s-70s we saw the introduction of Cheap Japanese Cars
    The initial reaction was "Jap Crap", who"d buy one

    Then we had the Koreans led by Hyundai (Bond Motor Corporation)
    A similar reaction as that of the Japanese.

    Then we had a wave (and still have it) of various brands made in 3rd world countries such as Thailand.

    And now the Chinese are coming.

    The question is will the Chinese makes/models put downward pressure on the dominant Jap & Korean models?
    Will Ford pull a few more rabbits out of its global hat or will the Chinese do a "Japanese" to our market.

    China is already the biggest global manufacturer and market by far with its design/engineering and production
    rapidly reaching world standards with much lower production costs. That is reflected in Aussie retail pricing
    which apples for apples Chinese models are about 30% cheaper than Korean & nearly 50% cheaper than Japanese.

    Great Wall products are now the top seller of the Chinese makes.

    The China skeptics are saying:
    -look at the paint & upholstery ; it disintegrates within 7 years
    -dont mention rought ride and mechanical durability etc.

    But of course The Chinese, like the Koreans, are now offering a limited 7 year warranty to allay buyer skepticism
    and the Chinese parts are dirt cheap too.
    In other words the Chinese are putting their money where its mouth is!

    How will it all pan out?

    IMO the Chinese will knock off the Japanese as the premium motor manufacturer but that could still
    be 10 years away. Auto manufacturing and technology features high in China's "Made in China 2025"
    mega economic plan which allocates huge Government assistance in R&D in select manufacturing segments.

    History has told us that you can't beat economy of scale when it comes to auto manufacturing, IMO.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.