Your Next Ford Could Be Made in China
It used to be that joint ventures with Chinese manufacturers were strictly for Chinese consumption. The Chinese would like nothing more than to expand to other markets with their foreign branded products. Strict joint venture contracts typically forbid just that. Sure, sometimes there are some small scale exportation tests. But usually, what is made in China, stays in China. Contracts can be changed or amended. More and more Chinese automakers seek to expand their relationship with joint venturers beyond China’s borders.
The move was started by GM that allowed China’s SAIC to ride into India on GM’s coat tails.
Now Ford’s Chinese partner Changan wants to do something similar. When Reuters asked whether Changan is planning to go to other markets with Ford, Zhang Baolin, president of Chongqing Changan said: “We are having discussions with each other on that. We are doing some studies currently.” Changan is strong in China’s mini vehicle segment, where Ford is weak. These cars are essential in opening emerging markets.
Other foreign automakers, including PSA, are also looking to expand their ties with their Chinese partners beyond China. PSA is thinking of exporting cars made at its manufacturing venture with Dongfeng to the rest of Asia and possibly Russia as early as next year, its Asia chief Gregoire Olivier said.
This might be the answer to China’s car export troubles: Export cars that don’t look like they have been made in China.
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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With all the extra capacity being reported in China, I could see this coming in a big way, and it will in NO way be limited to Ford.
Obviously China has become the new boogeyman. Germany was going to kill us. Then Japan. Korea. Now China. Wake me when it's somewhere interesting like Erietria or the Republic of Upper Volta. That might make for some excitement.
China's quality is as good as a manufacturer is willing to pay. The above comment about power tools is true. A Chinese made DeWalt is pretty much the same as the ones made elsewhere. The tool's quality has slipped IMHO but I don't blame China for that. The manufacturer made a decision based on cost/quality compromise and that is that. But what kills me is when a company ships American work overseas in an obvious move to cut costs yet the price we pay remains the same. Levi jeans are a good example. No longer made in USA they charge just as much. The only reason I bought them was because they were made here. Now, I buy the Modell's cheapies. If they are going to be made abroad, I might as well be the one to save some money. There is nothing wrong with imported goods when you want something unique from a given country, but to import the bread and butter components of day to day life means that people that should be working here are not. You can wax on all day about the global economy but the fact is that not everybody can work in the service sector, not everybody can retrain at age 50. and not everybody is suitable for college. A country's economy needs to be able to employ as many people as possible. Just think of all those IT people who felt secure as being part of today's high tech economy...IT jobs have dried up like water in a desert as companies outsource their computer needs...
The drop in US quality correlates with Mr. Bush's presidency. When the "Republican" party made it clear that there would be no prosecution for any business activity, it unleashed a flood of fraud in the marketplace. China shipping junk would not be prosecuted. Pollution regulations not honored, SEC investigations stalled. I have never seen the levels of fraud in the business community as I saw under Mr. Bush. This has a negative effect on all business, as businesses run for fraud, crowds out honest businessmen.