Both the automotive industry and the press have been treating the Chinese automakers as the next Mongol horde or, more recently, the next Asian wave after the Korean Hyundai and Kia. But Keith Crain, publisher and editor-in-chief of Automotive News, begs to differ.
Both the automotive industry and the press have been treating the Chinese automakers as the next Mongol horde or, more recently, the next Asian wave after the Korean Hyundai and Kia. But Keith Crain, publisher and editor-in-chief of Automotive News, begs to differ.
According to The Auto Channel, Crain disregards the Chinese posing any threat to the Detroit Three (Chrysler, Ford, and General Motors) or even the imports that continue to gain ground in the U.S. Why? Simply the Chinese automakers are too busy with their own markets at the moment.
Crain makes sense. The Chinese auto market is still in its infancy which is why foreign automakers BMW, GM, Toyota, and Volkswagen (to name a few) have partnered with local automakers to gain marketshare. With over a billion people, the potential is huge as the living standards continue to rise.
We see other factors involved as well. As Chinese automake Geely discovered, car standards in the developed markets are quite high. The company test vehicles failed the U.S. emissions and safety standards.
Finally, the Chinese are facing toughened and experienced competitors: Ford and GM have not forgotten what happened when they ignored Toyota and Honda. Even Toyota, on its way to become the world’s dominant automaker, is casting a nervous eye at rising star Hyundai.
No, the Chinese automakers aren’t a threat. Yet.

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