China's auto exports have good or bad cost advantages will be the focus of the future
China News Service, December 2nd, China's factory has used toys, textiles and household appliances to fill stores around the world and is now entering the western automobile market. It is expected that China will produce 6.4 million cars and trucks next year, surpassing Germany and becoming the third largest automobile producer in the world.
The speed of development of automobile manufacturing in China is staggering, and it has the greatest potential in the world. The "China Daily, Automobile Herald" published in the article pointed out that the current Chinese auto manufacturing is still young and naive, so there have been many annoyances in the process of entering the international market.
The first is intellectual property disputes. Recently, General Motors stated that it had resolved an intellectual property dispute with Chery. General Motors accuses Chery of copying the design of its Spark car, and Chery's English name Chery sounds too much like Chevy, the nickname for the Chevrolet brand. In September, Chery agreed not to sell its car in the United States under the Chery brand.
Then there is the strength of the industry. According to a consultant from Kearney Management Consultants (Shanghai) Co., Ltd. in the United States, Chinese automakers employ foreign design and engineering consulting firms instead of spending a lot of time and money developing their R&D teams.
There is also the problem of speed of development. The Central Government provides tax incentives to encourage Chinese companies to go overseas. Another important reason why Chinese automakers are eager to export is that they are not selling fast enough in China. Automobile manufacturers (including foreign companies and Chinese companies) produce more cars than they sell, and they are also actively adding factories and expanding production capacity.
The degree of automation is also a major challenge. For example: Honda is the only foreign car manufacturer that exports cars produced in China to the West. Since the summer of this year, Honda has exported more than 3,500 Jazz miniature cars produced in Guangzhou to Germany. But Honda said that the cost of producing Jazz in China is not lower than in Japan. At the Guangzhou factory, 40% of parts are purchased from Japan.
In spite of this, no one dared to take the Chinese off guard. David Elshof, a spokesman for Chrysler, said: "Everybody knows that it took the Japanese about 20 years to truly establish themselves in the United States. The Koreans spent 10 years. We are confident that the Chinese may only It takes less than 5 years."
Honda believes that once China's supply chain improves and Honda and other automakers increase production, the difference between wages and raw material costs and Japan's output value will make Honda's product prices in China have invincible advantages. The advantages of Chinese cars in the future are here.
The top three automakers in the United States are struggling not to lag behind foreign rivals because of higher retirement spending and aging labor force. The average salaries (including medical benefits) that GM, Ford, Daimler-Chrysler, etc., pay each worker per hour is about one-third higher than the salary paid by Japanese car companies to U.S. production workers. This is about a Chinese company like JMC. 50 times the factory. Therefore, the Chinese Automobile Association began to base itself on the US market in 2010. ( Shen farmer)
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