Ford To Export Made-in-China Cars?
Another American car company rides to the rescue of China’s feared, but so far dismal car exports. Ford is in talks with its Chinese Joint venture partner Changan to export China-made Ford vehicles to emerging markets, two people familiar with the matter told Reuters.
This follows a move by GM that started exporting Made-in-China Sails, and which will ship Made-in-China Chevys to emerging markets in South America, Africa, Middle East and Eastern Europe. There is also the supposedly Made-for-China, but in reality made for export from China Bao Jun, a product made by GM’s joint venture with SAIC and Wuling. PSA is also planning to delight emerging countries with brands made at their China ventures.
So far, homegrown Chinese cars remained pretty much unsalable in export markets. Companies like Chery and Great Wall are trying to change that, but it is hard sledding. The Chinese always wanted to sell their joint venture cars abroad, but joint venture contracts kept them from doing so. These barriers fall one by one.
This is not the first time the matter had come up. A spokesman for Ford steadfastly denied the story. A Changan spokesman declined to comment.
In a few years, when fears become reality and we are awash in Chinese cars, remember who opened the floodgates.
Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.
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Wait - isn't GM doing the same thing? When the world, not just America, is awash in Chinese cars, there will be plenty of blame to go around. I wonder which co-op partner will be responsible for the influx into Europe.
Look at say a Holden Commodore. roughly 70% of its components are made in china, shipped 5000 miles to Australia, assembled by $25 per hour labor, and then the car is shipped 5000 miles to its export destination. Why not cut out the middle man?