Well it is a fact that China is the larest car market in the world. Their economy is growing by leaps and bounds, and their middle class is going to be the most rich middle class within the next 5 - 10 years. Its a fact.
Now, for those who aren't aware of how business works over there, is that since it is communist, the government is envolved in every aspect of business vs a democratic situation where you can pretty much run your business however you want.
For example, if you want to start a machining business over there. The Chinese government will go and aquire your machining equipment for you and give it to you to use. They dictate what brand, price, etc..... that is paid for said equpment. Know how the Chinese overnment decideds which brand is purchased? They look back at who has "greased the skids" the most (ie: kick backs to the deciding government employees and organizations)
As far as the car business goes, EVERY car builder is wanting to sell in China. And they aren't going to just let any company walk in and set-up a dealership in Beijing after filling out a small business licensce. It's allot more politcal, and bascially, nobody is going to sell there unless they are supporting that economy (ie building cars there, lining the right people's pockets, etc...)
I've worked for over 15 years in the Machine Tool business (CNC Machines) and I have been witness to the evolution in manufacturing in this country and theirs, and know many people who are working in the manufacturing world over there. The great majority of this country is blind to how the influece on China is on the rest of the work, most particularly manufacturing. These are decisions made by OUR government in the early-mid 90's (NAFTA, etc...) that basically de-valued value of the Blue-Collar American worker to the point that society turned their heads on those will skilled trades. For 15 years we tol our kids that welding, machining, etc.. were "dirty jobs" and we pumped our society full of graduates that have non-skilled degrees and are finding the business world is flooded with too many people all ready sitting around with those skills doin nothing.
If you are still the kind of person that is making your purchasing decisions based on where something is made, your already 10 years behind the curve on the way the world really is. A US car builder isn't building in China because they want a cheaper labor force, they are doing it because they HAVE to. GM fought it longer than any other builder, with several large programs workin with Korea (Hyundai) but they were just delaying it.
They are just preparing themselves to be competitive for the next 5-10 years of growth in their business. If they don't, they will end up sufferin the same fate as your British car builders in the 60s and 70s. Companies like Triumph, MG, etc.... all chose to ignore the growth of the American and Asian markets, and rather to focus on who made the better British car. Eventually your VWs, Hondas, Toyotas and even Ford had great success in the UK, because their manufacturing engineering cut their costs and to the point in which they could deliver MUCH better engineeered cars, which are what people will buy. Regardless of where they are made.
I wonder how long it will be until VAG plays the GM/China tune as loud as GM is doing?
