As investment has grown, China’s influence in the automotive sector has grown.
Made in China.
You can see these words printed on countless consumer goods – electronics, clothes, not cars. The first mass-produced cars in China will be sold in the U.S. -buick Envision.
China is the world’s largest car market. Chinese shoppers can easily buy twice as many cars as americans. Chinese companies have been investing billions of dollars in the auto industry. The latest example is Volvo, a Swedish carmaker known for its convenience, safety, and flagrantly unfixed vehicles, the pride of the Swedish car industry.
Geely, a Chinese conglomerate, bought Volvo from ford in 2010 for about $2 billion. Volvo has restructured, spending $11 billion on new cars and trucks.
“With Chinese ownership, we have been able to execute all the plans we have developed, after they have bought us,” said Lex Kerssemakers, chief executive of Volvo North America. “They gave us a lot of freedom, and I think we’ve taken advantage of that freedom.”
That freedom has left Volvo with the direction and culture of a Swedish company. Kerssemakers, who works for the company in Sweden, the United States and now Chinese ownership, said China’s involvement in the auto business is a natural evolution of China’s economic growth and its presence on the world stage.
“I think it’s an opportunity – it’s not a threat,” he said. “They’re starting to play a role in the auto industry, and I think it’s natural, given what’s going on in China.”
If Volvo represents Chinese investment in Europe and the United States, then gm represents U.S. investment in China. Its buick brand has established itself in China. China is increasingly important for luxury carmakers.
“We’ve always been centered around the United States, but today’s luxury brands are global,” said Johan De Nysschen, director of buick’s sister brand Cadillac. De Nysschen says China is at the heart of the Cadillac growth strategy.
One of the criticisms of the Chinese market is the complex she festival. “You have to understand that in China, you do business in a joint venture, which means any profitability you have, and you suggest sharing it with partners,” says De Nysschen. That, he says, means “you have a major economic hurdle to overcome before China makes exports more economically than American manufacturing.”
KBB.com, meanwhile, Rebecca Lindland, said auto makers can’t ignore the Chinese consumers, because of the “China attract huge number – it will help you in the new product, new technology and do not necessarily need to invest in a car. Sales are big here in the United States – you can easily sell them here and in China. ”
‘in addition to China’s current economic concerns, China is only growing in importance to the sector,’ he said. “It’s not growing fast,” she said. “Of course they have to figure out what’s going on in the stock market.”
Demand remains high, especially in China’s luxury cars. “They like their well-equipped vehicles, and there is a lot of profit here,” Lindland said.
Analysts say it is only a matter of time before the U.S. makes Chinese cars, but now China has had a big impact on the cars we already drive.