Comments on: Has China Inc. Bought America’s Outdated Auto Technology?

By: Szonyegtisztitas

Szonyegtisztitas — Mon, 31 May 2010 08:03:55 +0000

I think we will see lots more interesting acquisitions by Chinese companies in the West in the future.I am not sure that China Inc. needs Wall Street so much these days!

By: Chris Devonshire-Ellis

Chris Devonshire-Ellis — Mon, 26 Apr 2010 08:21:08 +0000

Thanks guys. India seems to be cornering the market in very low cost vehicles (China is already supplying some components). Getting Indian farmers from bullock and cart to minivans and families from motorbikes to small cars is happening as we speak. – Chris

By: Ügyvédi iroda

Ügyvédi iroda — Wed, 10 Mar 2010 10:48:15 +0000

I like the post pic ! Maybe Ford T modell?

By: Chiptuning MMC

Chiptuning MMC — Tue, 01 Dec 2009 16:01:50 +0000

Great postings here! I think China will pretty much overtake the U.S. in the car industry as well within 10 years.

By: Nigel

Nigel — Mon, 30 Nov 2009 06:13:26 +0000

Hi Chris,
Very interesting and thought provoking article.
To answer your points in order:

1. I was in India again last week (Calcutta & Bangalore), it is very difficult to make comparisons between China and India. However India is far behind China in automotive technology and the state of India’s industry probably cannot be blamed on the import of old technology decades ago. Personally I would love to own an Ambassador if I lived in India, it will be a sad day when they disappear!
China are already starting exports of “Roewe” and MG cars. As far as I know the Ambassador was never exported.
The purchase of the Rover production lines and technology by SAIC/Nanjing was a great way of acquiring new models and brands at a low price (about $100 million) compared with the equivalent design and development costs.
China has already started to move on with the technology that it imported (see point 2).

2. SAIC are working on a hybrid version of the Roewe 550 and 750 now so they are well aware of the opportunity. I think they are due out next year. Apparently they are also working on all electric versions!

3. I am not sure that China Inc needs Wall Street so much these days! They are making their own investments in green technology and I think we will see lots more interesting acquisitions by Chinese companies in the West in the future.

The J D Power China survey recently found that the Roewe brand dealerships give Number One customer satisfaction!

Finally, being British (my father long ago owned a very comfortable 1966 Rover 2000), I find it fascinating that a Chinese company has made a success out of a dying UK brand, good luck to them!

By: Bert Hartmann

Bert Hartmann — Fri, 27 Nov 2009 02:09:14 +0000

I like your article and you do have some good points. But as far as battery technology and electric cars, have you ever hear of a company named BYD? Do you wonder why Warren Buffett is investing in them? China will move towards anything that allows them to save money and reduce their need for importing, that is the main driver of almost every decision. Electric cars seem to fit this criteria. Also, keep in mind how they have shifted to the use of electric bikes. They are everywhere in China and this is mainly due to a matter of economics.

By: George

George — Thu, 26 Nov 2009 13:22:00 +0000

Hi
I have to agree with Andy on his three points I also agree to your reply Chris. I under the impression some of the LPG vehicles are a combination of LPG / Combustion.

I also feel that the Chinese infrastructure is more able to implement a electrical/ charging system for the eventual electric car.
I feel there are a lot of variables that will influence the outcome e.g Government involvement, disposable incomes, size of the market.

My feelings are China will edge it and as Andy says
“It’ll certainly be interesting to see how it all turns out in 5years time”

By: Chris Devonshire-Ellis

Chris Devonshire-Ellis — Tue, 24 Nov 2009 03:18:48 +0000

Thanks Andy – I would agree with those points, however it does seem China has invested in what is outdated technology in buying those manufacturers. China also isn’t in the lead as regards battery and electric technology – the US, Japan and India I think lead the way here. It will be interesting to see what the future holds. There are far more hybrid public and LPG vehicles on the streets of Delhi & Mumbai today for example than there are in Beijing and Shanghai, where taxis are still all combustion engines. In India it’s all LPG. Thanks – Chris

By: Andy

Andy — Mon, 23 Nov 2009 21:49:36 +0000

Hi Chris

On the 1st point, remember that India was previously a “closed” market, so there wasn’t enough competitive pressure to force carmakers to improve. In contrast, the chinese marketplace is being fought over by 40? domestic chinese carmakers who compete or cooperate with all the global auto groups.

On the 2nd and 3rd points, I agree that combustion engines are on the way out, but I think there is still a minimum of 10years before we can safely say it is completely obsolete. Also, foreign companies come with more expertise than just the “engine”.

In any case, it looks to me that China will take a commanding lead in “green” vehicles given:
1) the technology leadership in electrically powered vehicles certain chinese companies already have
2) the plans to restrict the export of rare earth metals required for all sorts of “green” technologies, thereby forcing their manufacture and presumably design to sit inside China
3) explicit government support & funding

It’ll certainly be interesting to see how it all turns out in 5years time.