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Friday, May 8, 2009

Shanghai Auto Show: China's auto rookie to the U.S. auto giant "sword flashed"

By Zou Frbiz

The global financial crisis, in order to plunder the world's auto market has been the first to occupy the Chinese market transactions, the plight of the U.S. auto giants have had to struggle every means in Shanghai come back home against the Chinese automobile manufacturers. Although the headquarters is a positive demand for the Government to provide financial support, but in the past few months, Ford Motor and General Motors in the Chinese market has been singing songs, the performance of gratifying. And only in the past three months, the Chinese have overtaken the United States to become the first generation of global automotive market.

However, the Chinese provincial production plants such as Geely Automobile and Chery Automobile, in the past small proportion months, there is also a good performance. Financial calamity, China's auto giants have been as an alternative "victims", the provincial car production plants sense to suppose into the ranks of the global automotive head in hope.

Monday before the unfastening of the Shanghai International Motor Show, the market study firm TNS China Automotive Business Director Klaus Paur external grams, said: "The recession in the international finances, really for China's household vehicle manufacturers to supply a development opportunity."

Such as "small cars tax rebates" and other government incentives under the impetus of China's auto market in March has reached an unprecedented sales of 1.08 million.

Chinese Government's authorized facts and numbers displayed that the first quarter of 2009, China's vehicle sales market over the identical time span last year an boost of almost 6 percentage points to 2.64 million.

However, in spite of the first quarter of sales of China automobile market gratifying, but the recent TNS businesses in mainland China more than 1,000 consumers pursued a survey survey in China for virtually 45% of probable car clients out of the overall fiscal circumstances fears, delayed the pay for plan.

Paur that, for good at the lower end of market operations in terms of China's domestic car makers, these factors would be injected with one dose of stimulants. He said: "They (the Chinese automobile manufacturers) of prudent behavior from the consumers benefit. At the same time, they will be proactive in positioning itself for the foreign brands are a good alternative."

Nevertheless, the General Motors Corporation said last month in mainland China sales record, and designs to be in five years in China, impelling up annual sales of 2,000,000. Last week, GM China President Kevin Wale localities in "Wall Street Journal" in an interview said: "We are very assured, at this instant we do not have a large number of inputs, it can be a important growth."

Ford also is actively compressing ahead in the Chinese market. It is the implementation of the Beijing central social family members to seize the "small displacement car tax rebate" program opportunities, and actively promote its four-door Fiesta models such as small displacement.

At the same time, China's worker car production plants are also endeavouring to participate the U.S. giants of traditional paddocks of strength. Chinese automotive production plants Geely Automobile and Chery Automobile is planning to show in public a many diagram of them the first American luxury cars.

The current Shanghai Auto Show, Geely Automobile will showcase its high-end "Emgrand" brand cars, Chery Automobile will also launch "Riich G6" brand of high-end cars. The two originally planned to sell in the domestic market of the brand, the two companies has now been included into the developed markets in Europe and America. Chery Automobile five this week in a statement said: "We should start at the beginning of its position in the international arena."

Chinese vehicle manufacturers will furthermore be on brandish at the auto show-powered and environmentally-friendly hybrid vehicles.

However, in spite of China's auto production plants hopeful, primed to demonstrate its mettle, the Chinese auto market has fragmented the birth has not been any global brand. China there are more than 100 provincial car production plants, and bulk of them funded by the provincial governments.

Although China's inside central social family members has repeatedly summoned on car production plants to conduct joint, mergers and acquisitions, but the reorganization of gurus concluded that Alix Partners Inc., has been "slow progress in this process, 'done'."

Alix Partners, a business review displays that vehicle manufacturers and the position of distinct auto components enterprises are generally not the support of the Government, there may be a almost 40% of the enterprises are opposite varying qualifications of liquidity lack, and even numerous exactly opposite the hazard of bankruptcy.

Alix Partners, complete overseer of China, said Ivo Naumann, parts and constituents enterprises are facing problems, auto production plants will have a cascade effect. He said: "If your demonstration because the give of parts and constituents providers are compelled to finish the load, afterward you will have very many fiscal loss."

Ivo predicted that China's domestic auto parts suppliers combined, the phenomenon of mergers and acquisitions in the next 1-2 years there. - 18423

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