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Originally posted by interesting at 2008-4-28 23:33
I have an odd question for you, actually. In the US and Europe, the plethora of car companies were rapidly reduced to a handful with the former companies becoming brands of the latter. How ...
This is also what i wanted to discuss. In the US ,there are roughly three major car companies: GM,Ford and Cherysler (i guess so as i have never been to there ) .Consideing the huge market of the US, the market concentration is quite remarkable. Take a look at China, it's just the world No.3 three car market and has the potential to become No.2. However, how many Car companies China has! FAW,Dongfeng, SAIC,Guangzhou Auto Group, these are are the most powerful ones and are considered "the national team And there are still some local and private owned ones: Chery, Chang'an, Beijing Auto Group, Foton, Haima, Brillance, Geely, JAC, Kinglong, ChangHe, i am sure there are more than these i can call the name.
As far as i know, this phenomenon has deep root causes. Firstly and most importantly is that the market is not unified as we may believe under the cover of China and the local govenrment plays too big a role in developing car companies as its investment intensive industry which means financial support is indeed necessary. Anhui rpovincial government wants to develop its own auto industry and promote its economy, so it helped funded Chery and supported JAC quite much. Other provinces just do the primarily same thing. Secondly, the auto industry of China is only in its infantry, so it's understandable that so manr car companies co-exist. As the market becoming mature, i am sure a number of them will be acquired or mergered. We already have an case, Dongfeng Group just bought Hafei which is a small car company specialized in making mini cars and vans. I guess such cases will continue to come out ,wait and see:)