Author: matt605

What American car company should China buy? [Copy link] 中文

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Post time 2008-12-5 10:08:36 |Display all floors
You people are all stupid. I'll be blunt and frank.

US car makers have actually produced a long list of very good, very popular cars (not SUVs), with high reliability, excellent mileage and so on. The major problem is that American car manufacturers, unlike every other American corporation are totally inept marketers.

Both GM and Ford have far too many brands and too many cars under those brands. This means that instead of selling one car once, they have to sell the same car as many as 4 times, one for each badge. At the same time this practice, which goes by the term "badge engineering", dilutes the image of each brand. GM actually produces excellent cars, a good slate of them are or have been  better than Toyota's vehicles and no less reliable. However, they have to promote each one across several brands and hence can't really communicate how good the vehicles are; since they can't do this, they can't dismiss their reputation from the 1970s and 1980s of producing vehicles that are simply bad.

To make this problem worse, they have an awesome capacity to hang themselves by killing really good cars because they aren't high margin vehicles. Hence good passenger cars will get killed in order to shift resources towards producing more SUVs (for example).

The reason that China shouldn't be looking at buying any car companies is contained in this story and their experience with Rover. The fact is that the Chinese are even worse with branding and will instantly kill any brand they buy or will simply buy a brand that is toxic all by itself. If China even tried to buy a US company there would be infinite backlash and, worse, the entire brand would become toxic overnight. That's why I originally suggested Buick as a safe buy for China: they're apparently aspirational vehicles for a large segment of Chinese society, their US brand presence really isn't important (it is now seen as "your grandparent's car") and the marque does contain solid cars. The brand is perfect for China because it won't suffer from being in their hands and isn't worth much to anyone else anyhow. They can buy it cheap and grow the domestic Chinese market for it.

With everything else, China's just asking to be whipped like no one's business.
"Justice prevails... evil justice."

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Post time 2008-12-5 13:05:19 |Display all floors

Reply #1 matt605's post

China should buy all those subsidiaries that GM, Ford or Chrysler wants to "sell away".


ha ha ha

I doubt the Amerikan REgime will let a non-protectorate state buy their key industrial companies.
I think we learnt that "not too long ago".


ha ha ha


Green DRagon
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Post time 2008-12-5 13:16:02 |Display all floors
1. GD, How can you call the USA protectionist when a foreigner has trouble just starting a company in China.

2. I think that the American auto manufacturers dug their own grave with ridiculous styling (GM) and brand dilution (GM). The others are suffering from poor decision making. SUVs and awful compacts. Ugghh.
"Finch...stay away from that Ficus! That's a jizz-free Ficus."- Steve Stiffler

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Post time 2008-12-5 13:38:41 |Display all floors

Reply #11 tekvicious's post

Well, i believe China is still a developing state, with portions of the empire looking "developed".

The average income of their citizen is just 1/20 of an Amerikan fella, or for that sake for most of the British Club.
It's likely for the Amerikan Institution to be able to afford to buy out major Chinese industrial companies, notwithstanding large Amerikan national debts.
China also knows that it's a BIG STATE and would not get favourable treatment on complete takeover of key or strategic industrial companies in other large nations and vice versa. In fact no nation in the world, British Club included would allowed that. (except the UK; and thats because the British thinks the automobile industry is a simple consumer product that is no longer a key technological component in it's economy)

I am just being practical about the situation.
(come on, a company like Chery, Brilliance, GAIC buying a gigantic General Motors....don't kid me)

and i think the Amerikan Regime is exagerating it's problems, to cause pressure in the global economy.


As a sometimes neutral "above the fray" observer, it's pretty fun to observe the "GREAT GAME" and discuss it here in the CD BBS.


cheerios!


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Post time 2008-12-5 14:06:05 |Display all floors

Mmmmmh!

Tata bought Jaguar.   

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Post time 2008-12-5 14:27:15 |Display all floors
Originally posted by interesting at 2008-12-5 10:08
You people are all stupid. I'll be blunt and frank.

US car makers have actually produced a long list of very good, very popular cars (not SUVs), with high reliability, excellent mileage and so o ...



Utterly rubbish what you’re talking about. Buick, my ars-  it’s true that it isn't worth much to no-one else.
Not “BUICK” is powering the metal cage but a gasoline or dies powered device. Hybrid is just another silly invention. Do you carry a miniature gen set with you to power your pacemaker should the lithium cells give in!
China will  make big steps forward in terms of electric cars by research towards better energy density and specific energy. The big 3’s been beating the same old petrol horse to dead. Simple as that.
Next generation of Lithium iron phosphate batteries will pave the way, without the big 3’s in the way. There have been so many inventions worldwide, only to be bought up and guess what!!

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Post time 2008-12-5 14:48:28 |Display all floors
Buying up factories and brands would be one way to go. I disagree with this suggestion of anything bought by the Chinese becoming "toxic" because it simply hasn't been the case with Lenovo. That said I think buying one of the autos outright could be disastrous unless it was Ford since they seem to be the best-positioned. Buying up brands and plants would be the best idea. With GM or Chrysler in bankruptcy there would be fire sales of assets with factories and brands on the chopping block.

Chinese automakers would be able to expand their market for a fairly low price.

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