Friday, August 27, 2004

You can bet we're next...

First Chinese car to hit road in Australia. This is pretty cool news. To my view, pretty much the only way the Chinese automotive industry will be able to compete abroad is through this type of direct foreign investment by established firms like Volkswagen. From my experience dealing with Geely Motor, the third largest Chinese automobile manufacturer, I would be very hesitant in dealing with Chinese cars. That company produces some pretty awful motorscooters, although they look nearly identical to decent brands. I can only imagine what their cars are like... While it may be unfair to apply these experiences to the entire industry, I find it unlikely that any Chinese manufacturers will be able to close the technological gap without the assistance of the established industry giants. Chinese automobile exports are definitely a trend worth watching though...