By on May 22, 2012

The dreaded huge wave of cheap Chinese exports – is still not happening. Instead, China’s Changan exports factories.

“We are looking at building automobile assembly plants in foreign markets including Russia and Brazil,” Xu Liuping, board chairman of Shenzhen-listed Changan told China Daily.

Changan (a.k.a. Chana) is owned by China’s largest military industrial group, China South Industries Group Corp. Changan has a long standing joint venture with Ford.

While other carmakers produce little more than noise when it comes to own brands, Changan quietly became China’s largest maker of indigenous brands.

By 2020, Changan wants to produce 4 million automobiles annually under its independent brands. Changan already has six foreign factories in Mexico, Egypt and other countries.

 

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12 Comments on “China’s Changan Goes Abroad...”


  • avatar
    aristurtle

    That certainly doesn’t look like somebody just took the Acura badge and flipped it upside-down, no sir!

    • 0 avatar
      ranwhenparked

      The same company also does a Maserati logo copy and a vaguely Toyota one, depending on the product.

    • 0 avatar
      redliner

      If only Acuras looked as good as this “Sense Concept”

    • 0 avatar
      redav

      There’s a recent trend among some anime studios – they use real products such as cars in their shows, but they don’t (can’t?) use the real logos. So they just flip them around, instead. I’ve seen a backwards Vaio on a laptop, an upside down Toyota logo, a Mazda logo turned on its side to look like an “E,” and numerous others. This thing would fit right in.

  • avatar
    Tosh

    While technically Mexico may be “abroad,” seems to me they’re right NEXT DOOR. Hello, China is making cars NEXT DOOR!

  • avatar
    sportyaccordy

    I am like, deathly curious as to how its cheaper to export the factories

    I guess they save on shipping? Are there geographic differences in prices of steel? I guess they have run the numbers.

    The other biggie is how are they so sure folks in these countries WANT these cars? In Mexico for example the king of sales is the Nissan Tsuru (aka B13 Sentra). It sells for about $9-10K new. How do they plan to compete?

    • 0 avatar
      hgrunt

      They probably plan to compete by offering cars with copious amounts of standard equipment and gadgets that cars in the 8-9k price range doesn’t have.

    • 0 avatar
      tekdemon

      Probably a combination of tax policies (hefty import duties in a lot of places) and the fact that it’s a lot easier to get people to buy more of the cars if they’re not imports but made at home.

  • avatar
    LordDetroitofLondon

    Maybe Mazda can license this design? Looks a lot better than most of the current Mazdas…

  • avatar
    Glen.H

    Exporting factories provides a buffer against currency fluctuations- if an emergent market like Mexico’s has a crash in the value of its currency import prices rocket. If you have local production you also can get around protectionist barriers, which is increasingly likely in the current economic climate.

    • 0 avatar
      Lorenzo

      All good points. Another is that China imports much of its iron ore. Mexico is an ore producing country with its own steel industry. Yet another is the cost of transport from China, and the world price of oil is much higher than the domestic WTI price. Mexico has existing auto plants so there’s a pool of experienced workers to tap into, and don’t forget NAFTA. Mexican made Chinese vehicles, if they can pass standards, can be sold in the U.S., though they’d need to start a dealership/parts distribution network from scratch. If the Chinese play their cards right, they’d have an easier entry to the U.S. market than the Japanese did.


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