Chinese Automakers Move to Marginalize Joint Partners

chinese automakers move to marginalize joint partners

Last August, TTAC predicted the Chinese auto makers would start taking steps to edge their joint venture partners out of their market. And so today's International Herald Tribune reports that the Chinese government has "asked automakers to combine to compete with overseas rivals like Toyota and Volkswagen." To that end, China's largest auto maker has just announced that they're buying Nanjing Automotive Group's automotive assembly and parts-making businesses. Shanghai Automotive Industry Corporation (SAIC) currently has joint ventures with GM and VW. Nanjing owns the rights to the MG Rover brand– and is busy dumping their current joint venture with Fiat. There are no known plans to terminate any other joint ventures, but as SAIC strengthens its position in the Chinese auto market, they'll be looking to cut loose their foreign "partners." Count on it.

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  • BabyM BabyM on Dec 26, 2007

    I guess we could nationalize our automakers . . . after all, look how well it worked out for British Leyland!

  • LenS LenS on Dec 26, 2007

    The more the Chinese govt. gets involved, the more likely that they'll produce lousy cars. And making Yugos is no way to have even some sales in the US. Unsafe, polluting, low quality Chinese cars would pretty much unite every potential US buyer into avoiding them. Of course, if you rip off the auto companies, you'll encourage other industries to start deinvesting from China and head elsewhere. But totalitarian govt's. can never resist interfering and making things worse.

  • Guyincognito Guyincognito on Dec 27, 2007

    Surely the Chinese wouldn't milk us for our technology and money and then kick us out right??? GM and Ford tooled them up to build all the parts for all of their cars, trained their workers, helped pay for and construct the plants, handed them complete car designs, and simultaneously gave them a full handfull of the short curlies I mean put their US suppliers out of business.

  • DrBrian DrBrian on Dec 28, 2007

    Taxman100-I wonder if there will be people who condemn the Chinese government for supporting their own industries? if by supporting you mean ignoring all IP laws, patents or safety regs then yes I condemn them.

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