tag:blogger.com,1999:blog-16752530.post116327164637755325..comments2023-07-14T10:05:24.644-04:00Comments on The Reasoned Sceptic: China's Automotive AmbitionsC Neulhttp://www.blogger.com/profile/13359260012492887159noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-16752530.post-1163456600769129682006-11-13T17:23:00.000-05:002006-11-13T17:23:00.000-05:00As to point number one, I don't know what choice t...As to point number one, I don't know what choice they would have.<BR/><BR/>However, it's unlikely, simply because of China's size as a market. It's the same reason the US became home to so many large auto manufacturers during the 20th century.<BR/><BR/>However, even the Chinese, in time, might outsource assembly work to Ghana or Bosnia, et al.<BR/><BR/>As to the second point, I haven't noticed much trouble recently with imported cars. Then again, most significant 'foreign' makers located production facilities here, in effect re-employing some of the numbers (tho not exactly the same people) of people who were displaced by Ford's and GM's inept management. Thus, the Chinese could well locate facilities here in time, but preserve value for their equity interests.<BR/><BR/>I agree with your third point.C Neulhttps://www.blogger.com/profile/13359260012492887159noreply@blogger.comtag:blogger.com,1999:blog-16752530.post-1163378153737583792006-11-12T19:35:00.000-05:002006-11-12T19:35:00.000-05:001. Every country (except the US, often) moves to p...1. Every country (except the US, often) moves to protect its important industries. Japan has massive "unfair" protections for its auto industry; China is not simply going to roll over if the Bill Fords of the word 20 years from now decide that Ghana or Bosnia or Uruguay is the new place for low-cost, high-productivity auto manufacturing. These protecotinist steps invariably feed a cycle of rising manufacturing costs; being the lowest cost producer is a self-ending position.<BR/><BR/> 2. Cars, much as I smetimes wish they were, aren't widgets. Numerous factors go into the buying decision, and cost, often, is not the primary concern. We've all had the experience of an import car dealer telling us that our car will be in 3 months, loaded with options we don't want. There are plenty of reasons to "buy American," patriotism notwithstanding. That the US makers still sell a lot of cars is evidence of that. One might attribute that to US car buyers not knowing any better; maybe so, but no one ever made money by overestimating the intelligence of the cutomer base.<BR/><BR/> 3. I don't think there will be any strong protectioinist legislation coming out of this Congress. With majorities that are nowhere near veto-proof, the Democrats can do some things for show, but I doubt they will waste much energy creating and passing bills that are, in Reagan's words, "dead on arrival."Anonymousnoreply@blogger.com