Shanghai Auto Show: China’s auto rookie to the U.S. auto giant “sword flashed”

Posted on April 28, 2009 @ 3:02 am
by Zou Frbiz

The global financial crisis, in order to plunder the world’s auto market has been the first to occupy the Chinese market transactions, the plight of the U.S. auto giants have had to struggle every means in Shanghai come back home against the Chinese automobile manufacturers. Although the headquarters is a positive demand for the Government to provide financial support, but in the past few months, Ford Motor and General Motors in the Chinese market has been singing songs, the performance of gratifying. And only in the past three months, the Chinese have overtaken the United States to become the first generation of global automotive market.

However, the Chinese local manufacturers such as Geely Automobile and Chery Automobile, in the past few months, there is also a good performance. Financial crisis, China’s auto giants have been other than “victims”, the local car manufacturers seem to see into the ranks of the global automotive leader in hope.

Monday before the unfastening of the Shanghai International Motor Show, the market study firm TNS China Automotive Business Director Klaus Paur external grams, said: “The recession in the international finances, really for China’s household vehicle manufacturers to supply a development opportunity.”

Such as “small cars tax rebates” and other central social family members incentives below the drive of China’s auto market in March has came an exceptional sales of 1.08 million.

Chinese Government’s authorized facts and numbers displayed that the first quarter of 2009, China’s vehicle sales market over the identical time span last year an boost of almost 6 percentage points to 2.64 million.

However, in spite of the first quarter of sales of China automobile market gratifying, but the recent TNS businesses in mainland China more than 1,000 consumers pursued a survey survey in China for virtually 45% of probable car clients out of the overall fiscal circumstances fears, delayed the pay for plan.

Paur that, for good at the lower end of market operations in terms of China’s domestic car makers, these factors would be injected with one dose of stimulants. He said: “They (the Chinese automobile manufacturers) of prudent behavior from the consumers benefit. At the same time, they will be proactive in positioning itself for the foreign brands are a good alternative.”

Nevertheless, the General Motors Corporation said last month in mainland China sales record, and plans to be in five years in China, pushing up annual sales of 2,000,000. Last week, GM China President Kevin Wale areas in “Wall Street Journal” in an interview said: “We are very confident, at this moment we do not have a large number of inputs, it can be a significant growth.”

Ford furthermore is dynamically impelling ahead in the Chinese market. It is the implementation of the Beijing government to grab the “small displacement vehicle levy rebate” program possibilities, and dynamically encourage its four-door Fiesta forms for example little displacement.

At the same time, China’s worker car production plants are also endeavouring to participate the U.S. giants of traditional paddocks of strength. Chinese automotive production plants Geely Automobile and Chery Automobile is planning to show in public a many diagram of them the first American luxury cars.

The current Shanghai Auto Show, Geely Automobile will showcase its high-end “Emgrand” brand cars, Chery Automobile will also launch “Riich G6″ brand of high-end cars. The two originally planned to sell in the domestic market of the brand, the two companies has now been included into the developed markets in Europe and America. Chery Automobile five this week in a statement said: “We should start at the beginning of its position in the international arena.”

Chinese vehicle manufacturers will furthermore be on brandish at the auto show-powered and environmentally-friendly hybrid vehicles.

However, in spite of China’s auto production plants hopeful, primed to demonstrate its mettle, the Chinese auto market has fragmented the birth has not been any global brand. China there are more than 100 provincial car production plants, and bulk of them funded by the provincial governments.

Although China’s central government has repeatedly called on car manufacturers to conduct joint, mergers and acquisitions, but the reorganization of experts concluded that Alix Partners Inc., has been “slow progress in this process, ‘done’.”

Alix Partners, a company survey shows that car manufacturers and the situation of different auto parts enterprises are usually not the support of the Government, there may be a nearly 40% of the enterprises are facing varying degrees of liquidity shortage, and even many directly facing the danger of bankruptcy.

Alix Partners, general manager of China, said Ivo Naumann, parts and components enterprises are facing difficulties, auto manufacturers will have a cascade effect. He said: “If your production because the supply of parts and components suppliers are forced to stop the problem, then you will have tremendous economic loss.”

Ivo predicted that China’s worker auto parts providers merged, the phenomenon of mergers and acquisitions in the next 1-2 years there.

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