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GLG News by this Author

China Auto Trend #7: Local Vehicle Manufacturer’s Push to Build Brand Equity

October 28, 2009

Analysis of:The Path to Globalization of China's Automotive Industry | www.globalautoindustry.com

China opened its domestic market to foreign vehicle manufacturers in the 1980’s, starting with the first sino-foreign automotive joint venture between American Motors Corporation (AMC) and Beijing Automotive Industry Corporation (BAIC). Through the use of the joint venture form of cooperation, the government then hoped a domestic industry would emerge where the Chinese domestic companies would learn from their partners and eventually emerge as successful automotive companies.

China Auto Trend 6: Hyper-Competition Across China Automotive Market Segments

September 30, 2009

Analysis of:China: booming car sales, tiny profits | www.businessweek.com

The sixth of the Eight Overarching China Automotive Trends That Are Revolutionizing the Auto Industry concerns the rapidly changing structure of the China automotive market and its impact on the competitive landscape.  While many Vehicle Manufacturers have reported robust sales in 2009, what may not be understood or appreciated among those who are observing the growth in sales is that China is a market where quantity of sales should not be confused with quality of sales. 

China Auto Trend 5: Utilization of China's Auto Capacities for Global Expansion

September 5, 2009

Analysis of:Geely Auto makes official bid to buy Ford's Volvo | autonews.gasgoo.com

The fifth of the Eight Overarching China Automotive Trends That Are Revolutionizing the Auto Industry deals with how the growth and development of the China automotive market changes the automotive business model for the global auto industry. While it is obvious that China already has become the world’s factory for “everyday low price” merchandise, the ramifications of the rapid development of the Chinese automotive base on the global auto industry may not be as intuitively obvious. 

China Auto Trend 4: Investment in New Energy Vehicles & Related Infrastructure

August 22, 2009

Analysis of:Electric Cars: China's Power Play | www.time.com

The fourth of the Eight Overarching China Automotive Trends That Are Revolutionizing the Auto Industry was highlighted by this author in the article China's Next Revolution: Transforming the Global Automotive Industry (published on GLG News June 18, 2009). Several macroeconomic and sociopolitical challenges are directly linked with the automotive industry: the redistribution of global economic power, energy dependence, global trade balance and environmental concerns.

China Auto Trend 3: Acquisition of Foreign Assets & Key Development Competencies

August 15, 2009

Analysis of:Geely's Volvo bid not 'worth it' | www.chinadaily.com.cn

The forces shaping the third of the Eight Overarching China Automotive Trends That Are Revolutionizing the Auto Industry were addressed in my article entitled "The Path to Globalization of China's Automotive Industry" (GLG News May 18, 2009). The principal focus of this piece was to explain the challenges faced by Chinese Original Equipment Manufacturers (OEMs) when trying to accelerate development through "inorganic" acquisition of the assets of foreign manufacturers.                 

China Auto Trend 2: Global Redistribution of Assets to Capture China Growth

August 10, 2009

Analysis of:A Lesson For Detroit From VW | 247wallst.com

 As noted in the introduction to this series, we are witnessing the early stages of an economic revolution: a shift of the global center of gravity of economic strength towards the east which will result in profound changes in numerous industries.  As an economic bellwether, the automotive industry captures a great deal of interest.

China Auto Trend 1: Policy-driven Consolidation of Chinese Vehicle Manufacturers

August 1, 2009

Analysis of:GM Said to Consider European and Global Proposals for Opel Unit | www.bloomberg.com

In my last article, I introduced the Eight Overarching China Automotive Trends That Are Revolutionizing the Auto Industry. I will describe in this and subsequent articles how each trend is manifested, and how they cumulatively result in a transformational force which is fundamentally changing the business model and competitive landscape of the global auto industry.

Eight Overarching China Automotive Trends That Are Revolutionizing the Industry

July 31, 2009

Analysis of:Ford Loss May Narrow, Letting Mulally Sell Stock, Reduce Debt | www.bloomberg.com

We are witnessing the early stages of an economic revolution: a shift of the global center of gravity of economic strength towards the east which will result in profound changes in numerous industries. This article is a preamble of a series which will highlight eight overarching trends which are shaping the China automotive industry: now the largest in the world and the new battleground for domination of the global auto industry.

China's Next Revolution: Transforming The Global Automotive Industry

June 18, 2009

Analysis of:China's car sales boom, reshaping a way of life | www.usatoday.com

Henry Ford’s introduction of the moving assembly line in 1908 changed the world:  making automotive transportation affordable for the masses, accelerating the industrial revolution, and shaping the distribution of economic wealth.  While the world has witnessed great technological advances over the past century, the automobile industry still resembles that which was pioneered over a century ago.  Simply stated, the crisis faced by today’s automotive industry has a lot to do with the application of a "one size fits all" 20th-century industrial paradigm to a 21st century global environment. This paper describes how the rapidly expanding China market has become the catalyst driving the transformation of the business model and technological underpinnings of the global auto industry. undefined undefined undefined

General Motors: The Fall of an American Icon

June 4, 2009

Analysis of:Salutary lessons from the downfall of a carmaker | www.ft.com

The American automotive industry has met the hard realities of the 21st century.  The Chapter 11 bankruptcy filing of General Motors (GM) on June 1st, just one month after Chrysler entered US bankruptcy court, represents a defining moment in a long and once-proud history of an iconic American company.  Businesses hoping to grow and thrive in the 21st century global business environment would be wise to learn the lessons from GM’s ultimate failure to avoid the “Success Trap”. undefined   undefined undefined

The Path to Globalization of China’s Automotive Industry

May 18, 2009

Analysis of:China in major push to support car sector | www.ft.com

According to the US Census bureau, the trade deficit with China in 2008 stood at $266.3 billion, with China imports valued at $337.8 billion compared with US exports valued at $71.5 billion.  The message is clear:  China dominates the production of everyday goods.  It just seems logical to assume that it’s simply a matter of time before China becomes an exporter of the most symbolic cultural icon:  the automobile.  In this second article in a 3-part series on the China auto industry, I will describe the challenges faced by Chinese original equipment manufacturers (OEMs) in going global, and will highlight the role of M&A as a plausible but high-risk means of accelerating this process.

The Coming Structural Realignment of China’s Automotive Sector

April 28, 2009

Analysis of:China Influence Grows With Car Sales | www.nytimes.com

We are fortunate to be living in historic times.   While in the grip of the most severe economic contraction since the 1930s, it is in such times – and only in such times - that truly transformational structural change is possible.   While much has been said and written about the rapid emergence of China as the largest automotive market in the world, this obscures the reality of just how many structural problems remain unsolved in an industrial sector that China describes as a “pillar” of its economy.  In this first article in a 3-part series on the China auto industry, I will describe how the global financial crisis is the triggering event that will precipitate a major restructuring of the Chinese automotive sector. 

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