Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

9/18/2012 (3 years ago)

Catholic Online (

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.


By Catholic Online (NEWS CONSORTIUM)

Catholic Online (

9/18/2012 (3 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'

Copywriter 2015 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for October 2015
That human trafficking, the modern form of slavery, may be eradicated.
Evangelization: That with a missionary spirit the Christian communities of Asia may announce the Gospel to those who are still awaiting it.


More Business & Economics

Overworked Wall Street employees experience seizures, are hospitalized, and have died Watch

Image of John Hughes in Thomas' bedroom (Damon Winter).


Wall Street has always been a very demanding place to work and with recent work-related deaths, it seems that Wall Street must find a way to provide work-life balance to its employees.  NEW YORK CITY, NY (Catholic Online) - Thomas Hughes was a 29-year-old ... continue reading

7 ways to bring your family out of debt Watch

Image of


There are a lot of ways the improper handling of finances can jeopardize you and your family. The cost-of-living continues to get higher yet your income doesn't. How can you make ends meet? LOS ANGELES, CA (Catholic Online) - Fear not! You can regain control of your ... continue reading

3 easy ways to save money and pay off debt Watch

Image of


Work and play, earn and spend -It's the way the economy survives, but what about your survival? If you're having trouble saving money, don't have a dedicated savings account or just don't know how to stop spending, you may have a problem. LOS ANGELES, CA (Catholic ... continue reading

Is the stock market in trouble? Historical market turndowns following papal visits Watch

Image of Papal visits versus the stock market were reviewed.


As Pope Francis visits the United States, historical data of visits from his predecessors to the United States were linked to several market downturns in the US. MUNTINLUPA CITY, PHILIPPINES (Catholic Online) - Pope Francis made his historical visit to the United ... continue reading

Construction of high-speed rail between L.A., Las Vegas approved by U.S., China Watch

Image of Signed before Chinese President Xi Jinping's state visit to the U.S., the project is a milestone in China's efforts to market its high-speed rail technology in advanced economies.

By Catholic Online (NEWS CONSORTIUM)

A joint venture to build a high-speed railway linking Las Vegas and Los Angeles has been agreed upon. The project will be the first Chinese-made bullet-train project in the U.S. LOS ANGELES, CA (Catholic Online) - XpressWest Enterprises LLC, along with a China ... continue reading

PENDING FED DECISION: U.S. may be due for the first rate hike in 10 years Watch

Image of A relative

By Catholic Online (NEWS CONSORTIUM)

The Federal Reserve may have to make a very hard decision shortly. "If the Open Market Committee takes the plunge, it will be the first US rate hike in nearly 10 years," Telegraph columnist Jeremy Warner says. LOS ANGELES, CA (Catholic Online) - It will be the ... continue reading

Bear market looms, Yale University market scholar warns Watch

Image of

By Catholic Online (NEWS CONSORTIUM)

There is widespread concern that U.S. stocks are overvalued, which will lead to a ferocious bear market unseen since the "Dot-com" bubble burst in 2000. According to research by Yale University market scholar and Nobel economics laureate Robert Shiller, while ... continue reading

Job participation rate in U.S. at 38-year low Watch

Image of According to Bureau of Labor Statistics, the nation's civilian non-institutional population - which means that all people 16 years of age or older who were not in the military or an institution -- reached 251,096,000.

By Catholic Online (NEWS CONSORTIUM)

Americans not participating in the labor force jumped by a whopping 261,000 more in August than there was in July. The participation rate in U.S. labor remained at 62.6 percent, a 38-year low, for a third straight month in August. These are "cheerful" ... continue reading

Islamic State attempts to replace the U.S. dollar with gold coins Watch

Image of A five denar piece featuring a picture of seven wheat stalks, representing the

By Kenya Sinclair (NEWS CONSORTIUM)

The Islamic State has announced it will be producing gold currency with the goal of weakening the dollar. LOS ANGELES, CA (Catholic Online) - A video posted Saturday, August 29th by the Islamic State warns that replacing the dollar will be "the second blow to America's ... continue reading

Art collectors seek liquidity as market plummets Watch

Image of Picasso piece auctioned for a record $179.4 million.


Inquiries about art loans reportedly increased after global equities plunged. The unfortunate event led many to view their collections as assets and investment to cash-in.  MUNTINLUPA, PHILIPPINES (Catholic Online) - Bloomberg Business reports many collectors and ... continue reading

All Business & Economics News


Newsletter Sign Up icon

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

Subscribe to Catholic OnlineYouTube Channel

Daily Readings

Reading 1, Jonah 4:1-11
1 This made Jonah very indignant; he fell into a ... Read More

Psalm, Psalms 86:3-4, 5-6, 9-10
3 take pity on me, Lord, for to you I cry all the ... Read More

Gospel, Luke 11:1-4
1 Now it happened that he was in a certain place ... Read More

Saint of the Day

Saint of the Day for October 7th, 2015 Image

St. Artaldus
October 7: Artaldus (also called Arthaud) was born in the castle of ... Read More