U.S. Auto Industry Continues To Plummet, But China’s On The Rise

May 19, 2009

China (ChattahBox) – The auto industry has made a firm move to the East, as China overtakes the United States for total auto supremacy.

The US has traditionally held a large portion of the auto industry in it’s fist, but as companies like GM, Chrysler, and Ford quickly dwindling on the market, China is moving up.

While most of their auto makers are still more or less unknown around the world, their impressive business practices in bidding for various companies will likely begin giving them an edge to the competition.

But there is still some work ahead of them.

“They have world-class business and manufacturing capabilities now,” Harvard University’s Kelly Sims Gallagher explained.

“What they still lack is technological know-how, systems integration, being able to design new vehicles from scratch and get them to a manufacturing line.”

For now Chinese homegrown automakers like Chery, Brilliance and Geely Automobile Holdings are expanding mainly into developing regions like Southeast Asia, Russia, the Middle East, Africa and Latin America.  The Lova, Aveo and Spark are three small cars that General Motors could export from China to the United States starting in 2011, sources in China say.

GM expects to sell about 17,300 China-made vehicles in the United States in 2011 and to triple that to over 50,000 in 2014, according to a planning document that GM circulated among U.S. lawmakers.



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