Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

9/18/2012 (2 years ago)

Catholic Online (www.catholic.org)

Once rejected as poorly made imitations, Chinese cars now service chunk of population

While leading the world in electronics, China has never really been noted for its automotive industry. Many Chinese drivers would refuse to buy cars made within the country, due to their being poorly made and unsafe. Now - after cutting some corners and some mechanical improvement, Chinese cars such as the Panda, which sell for less than $7,000, are being snatched up and bought by consumers.

Chinese car makers also outsource most of their design and engineering. Cheap and cheerful small cars - termed 'good enough' to drive, sell for as low as $6,350, less than half the price of a plain Toyota.

Chinese car makers also outsource most of their design and engineering. Cheap and cheerful small cars - termed "good enough" to drive, sell for as low as $6,350, less than half the price of a plain Toyota.

Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

9/18/2012 (2 years ago)

Published in Business & Economics

Keywords: China, Chinese cars, Panda, quality, design, outsourcing


LOS ANGELES, CA (Catholic Online) - Chinese car makers are thrifty to a fault. For example: the Zhejiang Geely Holding Group Co. conducts 20 to 25 crash tests when it developed its Panda model. Other car makers typically conduct 125 to 150 crash tests for each new model.

Chinese car makers also outsource most of their design and engineering. Cheap and cheerful small cars - termed "good enough" to drive, sell for as low as $6,350, less than half the price of a plain Toyota.

Despite their plain and frumpy looks, some indigenous models are striking a balance between no-frills affordability and acceptable quality. This development has potentially significant implications for the world auto industry.

Such cars as the Panda and the Great Wall Haval H3 are becoming popular not only in China but increasingly so in emerging markets. Indonesia, Egypt and Ukraine are all nations that are happy to welcome these new vehicles. These very economical autos are sending the Chinese automotive industry to record levels, even as growth in China's auto market slows down. Some automotive analysts are predicting a 50 percent increase to 1.25 million vehicles.

These "good-enough" cars pose a serious challenge to the way the international industry operates.

"This is a warning shot to the established engineers who have told their management time and time and again that this is the minimum cost they can achieve with their existing design and production methodology," Shiro Nakamura, a top Nissan Motor Co. executive and the company's chief designer says. "Now the Chinese are saying they can cut another 30, 40 percent of the cost."

While it usually takes four to five years for established players like General Motors Co and Toyota Motor Corp to come up with a new car from scratch, Chinese manufacturers can now do so in just two and half years.

"Perhaps the Chinese achieve their low cost by sacrificing quality standards," Nakamura says. "But in many ways their way also points to 'over quality' or 'waste' we have built into our conventional design process over the years."

Global automakers continue to sell their pricey cars to rich Chinese, but local Chinese automakers had to come up with cheap cars for the masses.

Their solution in coming up with affordable cars was to simply copy the designs of foreign auto makers.

"Around 2000, China began embracing an approach it described as 'reverse-engineering.' It was essentially a fancy word for copying," Dai Ming, a senior engineer at CH-Auto Technology Corp. says. "The problem with those copied cars was that the Chinese were able to emulate the shape of a foreign car, but not its soul."

.

---


Pope Francis: end world hunger through 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for December 2014
Christmas, hope for humanity:
That the birth of the Redeemer may bring peace and hope to all people of good will.
Parents: That parents may be true evangelizers, passing on to their children the precious gift of faith.



Comments


More Business & Economics

OPEC's bust is America's boom! Why cheap oil is a friend to America Watch

Image of Falling oil prices have caused a great deal of pain among OPEC countries, but the group won't cut production until three months after oil drops below $40 a barrel.

By Matt Waterson (NEWS CONSORTIUM)

The price of a barrel of oil continues to plunge, bringing with it an economic boon to motorists and headaches and potential layoffs to oil producers in the U.S. and around the world. LOS ANGELES, CA (Catholic Online) - Currently the price of a barrel of oil is ... continue reading


Is OPEC over and done with? Bank of America makes startling predictions Watch

Image of OPEC is

By Catholic Online (NEWS CONSORTIUM)

According to Bank of America, the OPEC oil cartel no longer exists in any meaningful sense. Furthermore, crude prices will drop to $50 a barrel over the coming months. This might mean relief at the pump - but this isn't necessarily a good thing, officials warn. ... continue reading


Sears no longer where America shops: 235 stores to close shortly Watch

Image of Analysts called the move a step in the right direction for the company, which has been tapping into its real estate in creative ways to compensate for downward-spiraling sales.

By Troy Dredge, Catholic Online

Few retailers are as American as Sears, one of its former and most popular taglines being "Where America Shops." That's no longer the case, as Wal-Mart has long seized that throne. It was a heavy heart that Sears announced that 235 under-performing stores would ... continue reading


36-year-low: Labor participation in the U.S. lowest since 1978 Watch

Image of The year 1978 was marked by the non-ironic use of disco music by Americans who blasted it on the radio to shake their groove things.

By Troy Dredge, Catholic Online

The year 1978 was marked by the non-ironic use of disco music by Americans who blasted it on the radio to shake their groove things. Another, far less nostalgic reminder of the year has been offered up by the Bureau of Labor Statistics: The labor force ... continue reading


Reflects very badly on U.S.: China is now world's largest economy Watch

Image of How did this happen? As recently as 2000, we produced nearly three times as much as the Chinese.

By Troy Dredge, Catholic Online

In the great car rental war that was between Hertz and Avis back in the 1960s, Avis took pride in the fact that they were behind Hertz with the saying: "We're Number Two - so we try harder!" It seems like the United States didn't try hard enough, as for the ... continue reading


Falling oil prices have helped the U.S. economy and revitalized the spending power of the American consumer Watch

Image of The continuing decline in the price of crude oil has brought numerous benefits to the American consumer and the U.S. economy.

By Catholic Online (NEWS CONSORTIUM)

The recent plummet of oil prices have drained hundreds of billions of dollars from oil-rich exporters and oil companies but has injected a critically needed boost to the faltering economies in Europe and parts of Asia, but more directly to the American consumer, ... continue reading


Internet retail giant Amazon switches to a ROBOT workforce of thousands Watch

Image of Before anyone accuses Amazon of laying off human workers in order to facilitate automation, it must be noted that the company is opening more shipping centers and hiring 80,000 seasonal workers.

By Catholic Online (NEWS CONSORTIUM)

Internet retail giant Amazon.com Inc. is handling "Cyber Monday" - the online shopping rush that usually occurs on the Monday following the Thanksgiving weekend - all in stride. Anticipating a new influx of customers, Amazon has upgraded and expanded its ... continue reading


Is Apple about to hit $1 trillion? Not if Google has anything to say about it Watch

Image of While Apple dominates the smartphone market, some suspect that its heavy reliance on products will lead to its downfall to companies who offer more services and software.

By Catholic Online (NEWS CONSORTIUM)

Silicon Valley tech giant Apple may one day be worth more than a trillion. Just for a second think about how massive that is. LOS ANGELES, CA (Catholic Online) - The maker of mac computers, iPods, iPhones and more is already worth more than $670 billion, and has a $260 ... continue reading


Feet on the desk - more and more Americans simply don't want to work anymore Watch

Image of Pew Research says that 39 percent of 16 to 24-year-olds don't want to work, up a substantial amount from 29 percent in 2000.

By Catholic Online (NEWS CONSORTIUM)

Nearly four in 10 Americans, or 92 million, are not in the labor force. Many are unemployed for no fault of their own. Many others have simply stopped looking for work. Why? The reasons are complex. LOS ANGELES, CA (Catholic Online) - The largest group of people ... continue reading


REAL INCOME INEQUITY: 85 richest people now have as much money as poorest 3.5 billion Watch

Image of Billionaire investor Warren Buffett remarked more than three years ago that

By Catholic Online (NEWS CONSORTIUM)

The very rich and the very poor just grew further apart. According to Oxfam, the broadening chasm between wealth and poverty has grown so wide that the 85 richest billionaires on the planet, such as Carlos Slim, Bill Gates and Mark Zuckerberg now have as much ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Saint of the Day

Saint of the Day for December 18th, 2014 Image

St. Rufus
December 18: Rufus and Zosimus were citizens of Antioch (or perhaps Philippi) ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter