Author: wanzheli

Auto industry feels the pain of inflation [Copy link] 中文

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Post time 2008-5-1 07:44:37 |Display all floors

Toyota overtakes GM...

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Post time 2008-5-1 07:47:36 |Display all floors
as the biggest auto maker.
Why?
Could it be that most people in China only buy a GM car once, after discovering that it's an oil-leaking, gas-guzzling dinosaur?

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Post time 2008-5-1 08:17:16 |Display all floors

Hm...

... speaking of "Overseas Chinese"  looks like <he who shall not be named> is attempted a funny.

Nice try guy.
China's Eccentric 'Uncle Laowai' from Chicago, IL

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Post time 2008-5-1 08:19:24 |Display all floors
While some have attempted to highlight the many intractable problems confronting Chinese automobile manufacturers, others have even doubted the competency and viability of domestic business to compete in an increasingly cut-throat environment; whether they are supporters or detractors both are scratching only at the surface of the current reality of China auto market. Hurdles ranging from inflation in commodity prices to energy prices to wage pressures are just some of the costly expenses of doing business in an ever intertwine and globalized economy.  Soaring prices of commodity and energy simply mean the input cost of appearing on the balance sheets does matter considerably more than it once did but in no ways should mean inflationary pressures are reflected ONLY in Chinese automobile companies’ balance sheets.  Its effects are inclusive drastically impacting all companies – perhaps even more so upon domestic ones – operating in China’s auto industry.  

These aforementioned obstacles may be less calamitous than many fears but they are still fraught with dangers particularly for domestic companies that compete primarily on low-price which can rapidly diminish their already low-profit margins.  Chinese auto manufacturers should worry more about factors they can manage or have control over and less about whether external forces outside of their influence that may not be extinguished or mitigated.  Chinese automobile companies should strive to progressively improve upon the following areas: establishing efficient corporate culture and structure; streamlining supply and distribution lines; establishing after-sales servicing and strong branding; aspiring to innovative engineering and passionate designs.

As for specifics, I’ll defer to industry experts to flesh out or it can be gleaned by dipping into the well of Toyota and BMW, two of the most efficiently operated and managed automobile companies in the world.  BMW had long been synonymous with engineering superiority and luxury; on the other hand Toyota is heavy on manufacturing efficiency and heavier on the practice of quality control – currently skyrocketing to become the world’s number one seller of cars in sales volume overtaking GM, the longtime leader.

Some successes are the result of change in strategy and some are the consequence of brilliant new innovations.  And some are brought about by the realization that the company has lost focus and in need of fresh vision.  What will some of China’s auto company be remember by?:)

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Post time 2008-5-1 08:53:33 |Display all floors
If you look at the newer Chinese cars recently being produced, you'll see that they're almost up there with the Koreans and Japanese already. Not bad considering the relatively short time frame.

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Post time 2008-5-1 09:07:28 |Display all floors

Yes...

... skipping the whole copyright and pesky trademark issue will do that.
China's Eccentric 'Uncle Laowai' from Chicago, IL

http://blog.chinadaily.com.cn/home.php?mod=space&uid=135031&do=blog&view=me&from=space

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Post time 2008-5-1 09:28:04 |Display all floors
Originally posted by tradervic at 2008-5-1 09:07
... skipping the whole copyright and pesky trademark issue will do that.


That's an issue, if at all, to be resolved between China, Korea and Japan. American car manufacturers don't seem to have this problem.

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