China Wants to be a Worldwide Auto Industry Leader
Previously I have discussed my own opinion regarding the US bailout of the domestic auto industry. It is my belief that a primary reason for the investment of many billions of dollars is to prevent the Chinese from taking over two of the three domestic auto manufacturers. The Chinese government has heavily subsidized their auto manufacturers to make them competitive in the world market. It would require very little imagination to believe that the Chinese government would also assist their companies to buy up a failing US auto company.
It appears that the bailout may have delayed or slowed the influx of the Chinese into the American market, but it has hardly stopped the ambition. China is buying up pieces and parts of GM in the form of Hummer, and now a stake in Saab. Another Chinese firm is also widely reported to be the front runner in the search for a buyer for Volvo.
The timing is great fo a leap into the market. With name recognition, product patents to enter the market with, combined with distribution networks already in place - a quick startup with a competitively priced product could be only a few months away. With commercial real estate (former dealerships) avilable in most markets, this is a great time for China to jump in.
It appears that the bailout may have delayed or slowed the influx of the Chinese into the American market, but it has hardly stopped the ambition. China is buying up pieces and parts of GM in the form of Hummer, and now a stake in Saab. Another Chinese firm is also widely reported to be the front runner in the search for a buyer for Volvo.
The timing is great fo a leap into the market. With name recognition, product patents to enter the market with, combined with distribution networks already in place - a quick startup with a competitively priced product could be only a few months away. With commercial real estate (former dealerships) avilable in most markets, this is a great time for China to jump in.
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