Here Come the Chinese Cars?

Washington DC September 20, 2005; The AIADA newsletter reported that the Frankfurt Auto Show has featured several Chinese models, sparking conversation about Chinese cars and their future in the global marketplace.

An article in The Detroit News said the Chinese threat is “reflected mainly in the heightened urgency of European executives to slash costs.” VW head Wolfgang Bernhard called China automakers “aggressive” and predicted “after the Japanese and Koreans, this is the third wave of Asian manufacturers that’ll sweep around the world.

They’re going to go global the way the Korean automakers went global. There’s no way to stop them. We’ve got to be prepared." Carlos Ghosn, CEO of both alliance partners Renault SA and Nissan Motor Co., thinks China’s auto industry will undoubtedly boost global competition, but the most formidable competitors may not be the Chinese companies now rushing to be the first to export vehicles.

Ghosn’s companies and Honda are already in China, with Honda already exporting a Chinese-built compact, the Jazz, to Europe.